Air India is looking for new shareholders to participate in the airline. However, it does not seem that most of the carrier’s pilots would be interested in the offer, so far two pilots’ unions are in opposition to the traffic. These unions demanded that their members stay away from the employee consortium bidding for the airline. The deadline for submitting applications of interest is December 14th.
Pilot opposition to investments in airlines
It seems Air India employees are divided over their participation in the domestic carrier divestment process. According to Telegraph India, some of the employees under the leadership of Air India are planning to apply for Maharaja. In the meantime, the two pilot unions have jointly expressed their opposition to the move due to unresolved issues.
The Indian Association of Commercial Pilots (IPCA) and the Indian Pilot’s Guild (IPG) are two groups that are asking their members to avoid bidding in order to acquire 51% of the company. In terms of pro-investment investments, Air India’s commercial director, Meenakshi Malik, asked the airline’s employees to submit documents and donate 100,000 rupees ($ 1,355) each to acquire 51% of the company.
The pilots’ unions are opposed to the move, instructing their members not to accept Malik’s letter until the issue of wage cuts and a 25% arrears (wage arrears) suspension is resolved. Telegraph India received a letter from the pilots’ unions which was sent to their members:
“All pilots are advised not to acknowledge or participate in the process initiated by the management officer until the disproportionate 70% reduction in pilots’ salary over Air India top management (10%) has been resolved … In addition, there is no clarity on payments of unlawfully retained 25% of the arrears paid to pilots to date, while we are approaching the December 14 deadline for submitting Air India bids “
Air India parts purchase offer
The Telegraph also obtained a copy of the first letter asking for an employee’s investment from the airline’s commercial director. It reads as follows:
“Company ownership is what we are applying for, therefore we negotiate with our financial partner that our consortium of employees and management will jointly own and control [the majority] our airline … to take over this 51% of the company … each of us will have to contribute no more than Rs 1.00,000 to bid on the company … was to be picked up from employees “,
Can the arrangement still come together?
It is possible that this consortium will still be able to merge. After all, it appears that the pilots’ union opposition is not about the offer itself, but rather about pending issues related to airline management. Of course, with only eight days to register an interest, settling a salary dispute can be too much of a task in such a short time.
It may also be possible to raise enough money without the full participation of the workers, requiring others to make larger contributions than originally requested.
We’ll just have to wait and see what happens in the coming days.
How do you feel about airline employee ownership? Should he go forward? Let us know what you think in the comments.