Amid rising operational and financial pressures triggered by ongoing geopolitical tensions, Air India has introduced a series of cost-control measures, including deferring annual salary increments by at least one quarter, while assuring employees that layoffs are not expected.
According to sources, the announcements were made during a townhall meeting on Friday, where CEO Campbell Wilson, chief financial officer Sanjay Sharma and chief human resources officer Ravindra Kumar GP addressed staff.
CHRO Ravindra Kumar said the airline would go ahead with variable pay for the previous financial year and continue with planned promotions.
“We don’t anticipate layoffs,” Kumar said, adding that annual increments would be deferred by at least one quarter due to the uncertain economic environment.
With the assurance of “no layoff”, the airline sought to dispel speculation linked to the current geopolitical crisis.
The global aviation sector has come under pressure amid conflicts in West Asia, which have driven up aviation turbine fuel prices — a major component of airline operating costs.
India’s aviation industry is also facing continued disruption due to the closure of Pakistan’s airspace. These developments have affected travel sentiment and consumer confidence.
Wilson also told employees that the airline remains focused on protecting its core business, optimising deployment and strengthening a future-ready network despite persistent volatility.
Optimising deployment refers to improving the utilisation of resources across operations to enhance efficiency, particularly at a time when factors such as airspace closures leading to longer flight routes and rising jet fuel prices remain outside the airline’s control.
Wilson also asked employees to curb discretionary spending, renegotiate rates where possible and defer non-critical expenditure.
Stressing the need for tighter cost management, Wilson said, “There must be a laser sharp focus on eliminating wastage and leakages.”
He also highlighted the importance of continuing to improve customer experience in a cost-conscious manner.
