Why Air India is in trouble

Air India is working on plans to reduce its expenditure on employees by Rs
500 crore (Rs 5 billion) per annum, with a newly formed Committee
re-examining wage and other agreements in consultation with the Unions.

The cash-strapped airline's employee cost currently is over Rs 3,000 crore
(Rs 30 billion) annually, a company spokesperson said, adding that the
airline was now targetting a reduction in employee cost to the tune of Rs
500 crore per annum.

At present, the merged carrier has around 31,000 employees.

So why is the national airline in trouble? *Read on. . .*

*Image:* A passenger aircraft is silhouetted against the rising moon in New
Delhi.
*Photographs:*B Mathur/Reuters
http://business.rediff.com/slide-show/2009/jun/22/slide-show-1-why-air-india-is-in-trouble.htm

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