No layoffs, hikes deferred by at least a quarter: Air India management

NEW DELHI: In a morale booster for employees, lossmaking Air India on Friday said it does not anticipate any layoffs even as the airline has been battling a series of black swan events for a year now. However, annual increments “will be deferred by at least one quarter in light of the uncertain economic environment”. Addressing a Town Hall Friday, outgoing CEO Campbell Wilson and CHRO Ravindra Kumar GP are learnt to have spoken about the “tough times” and the need for employees to suspend discretionary spending and defer non-critical expenditures to cut costs.

The Town Hall follows an AI board meeting on Thurs-day during which cost-cutting measures were discussed as the airline has lost over Rs 22,000 crore last fiscal due to multiple factors, including closure of Pakistan airspace since Operation Sindoor, then the tragic Ahmedabad AI 171 crash, the US-Iran war that has led to further lengthening of western routes along with a sharp hike in jet fuel prices and the rupee crashing. Sources say the issue of Wilson’s successor was not finalised during Thursday’s board meeting.

The CHRO reportedly said AI will proceed with variable pay for FY26, continue with planned promotions while annual increments will be deferred by at least one quarter due to current uncertainty. “We don’t anticipate layoffs,” Kumar said.

Wilson stressed on the need to cut costs. He urged employees to suspend discretionary spending, renegotiate rates where feasible, and defer non-critical expenditures. “There must be a laser sharp focus on eliminating wastage and leakages,” he said.
Wilson said while AI wasn’t expecting a profit last fiscal, the actual losses were more than what it had anticipated.



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