I don’t think you can call it a retrenchment policy of Air India. It is surely trying to cut costs but that is obvious. Air India has approved leave without pay (LWP) for six months to two years and extendable up to 5 years. Air India has constituted a committee for identifying surplus manpower. Air India has also cut the monthly allowances of its employees earning more than Rs.25,000 by half.

Air India has clarified that basic salary and allowances IDA and HRA remain unchanged. Cabin crew will take 20% cut on allowances like check allowance, flying allowance and quick return allowance. Pilots would take up to a 40% cut in allowances. Aviation has been one of the worst hit by the pandemic and most of the measures are virtually inevitable.