- Airports Authority of India (AAI) board approves 50% reduction in allowances of AAI employees
- The reduction is provisional, will be effective till December 2021 only, also the deducted amount will be reimbursed, said management sources
New Delhi/ Vivek Shukla: The worst fear of Airports Authority of India (AAI) employees has come out to be true. Giving the reason of falling revenue from operations of the company due to COVID-19 situation, the AAI board in a meeting held on Wednesday has approved a reduction of 50 percent in the perks of AAI employees. Although, the management has maintained that the present reduction in the perks of the employees is provisional and will only be effective till December 2021 only.
AAI board sources told PSU Watch that the ongoing COVID-19 pandemic has had an enormous impact on the aviation industry and has equally affected passenger traffic, air cargo demand, airport workforce and incoming revenues. In the given circumstances it is important to keep the company's expenses under check, so the "Board has approved 50 percent perks to be deferred from next month till December 2021". It is pertinent to mention here that the allowances form 35 percent of the total salaries of authority employees. Now with 50 percent reduction in the allowances, the effective reduction in the salaries will be 17.5 percent. "This reduction in salary is provisional and will be effective till December 2021 only," said the source.
Also, the deducted amount will be reimbursed as soon as the financial performance of the company improves, the source who spoke to PSU Watch on condition of anonymity added.
ALSO READ: Atmanirbhar Bharat: Vman Aviation signs 1st aircraft purchase agreement with Airbus Helicopters
On July 6 the Joint Forum of Unions and Association of the Airports Authority of India (AAI) had observed a lunch-hour protest against a possible reduction in allowances and perks of the employees. The protest will be amplified if the AAI management goes ahead with the decision of reduction in allowances, the union had threatened.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)