Air India (AI) pilots today served the management a fresh ultimatum to sort out issues relating to salary and allowances in eight days, failing which they threatened to go on strike from November 24.
In a letter written to the airline’s Chairman and Managing Director Arvind Jadhav, the Indian Commercial Pilots Association (ICPA) said: “If issues, including that of pending arrears, are not addressed by November 10, the letter be considered a strike notice. This grievance letter be considered as a 14-day notice of strike under Section 22 of the Industrial Disputes Act, 1947, by which strike shall be effective from 1700 hrs of November 24.”
ICPA, the non-executive pilots’ body of the erstwhile Indian Airlines, claims the representation of 800 pilots. It claimed the company has not paid salary allowances, which constitute almost 70-80 per cent of their salary, since August.
In September, 400 Air India executive pilots had gone on a mass sick leave for four days to protest pay cuts, resulting in more than 200 flights being cancelled and the airline losing more than Rs 100 crore.
Air India to review ground handling JV
Meanwhile, sources said Air India might review its ground handling joint venture (JV) agreement with Singapore Air Terminal Services (SATS) if the latter diluted its stake to another company in that country.
In that case, Air India would carry out ground handling activities through its own subsidiary, they said.
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Maintaining that SATS was considering the idea of participating in these activities in India with another Singaporean company, sources said Air India officials were understood to have recently informed a parliamentary committee about their stand if SATS decided to dilute its stake.
The Air India-SATS JV with 50:50 equity ratio was set up on the basis of an agreement that did not provide for SATS joining hands with another firm, sources said.
They said, since the AI-SATS ground handling company started operations at the new Bangalore and Hyderabad airports, the revenue earned by Air India dipped drastically.
Ground handling services include, among other things, check-in counters, customer services, airline lounges and transfers.
On the airside, the services include aircraft guidance, towing, ground power, air conditioning, baggage handling, refuelling, aircraft dispatch and cabin cleaning.
The hiving off of these activities to the AI-SATS JV is being vehemently opposed by Air India’s staff unions.
AI ties up with Sharjah’s Aerostar
Meanwhile, AI has entered into a strategic alliance with Sharjah-based Aerostar Asset Management to provide engine repair and management solutions to airline operators across West Asia. The alliance for engine MRO (Maintenance, Repair and Overhaul) would work under the brand ‘The A Team’.
A marketing agreement was recently executed between the two companies and the brand would be formally launched at the Dubai Airshow to be held during November 15-19, a company press release said here today.