AI's staff base better aligned with private-sector performance metrics post privatisation: Govt

New Delhi, Mar 9 (PTI) The civil aviation ministry on Monday informed the Rajya Sabha that post-privatisation, Air India's workforce has been modernised through hiring, reshaping contracts, and offering exit options for untenured staff.

"The employee base is younger, skilled, and better aligned with private-sector performance metrics. Recent policy changes boost retention (eg., raised retirement ages), while operational disciplines (like restricting business-class travel) reflect a customer-centric shift," Minister of State for Civil Aviation Murlidhar Mohol said in a written reply.

Tata Group acquired loss-making Air India from the government in January 2022.

Mohol said that as a private entity, operational and financial performance matters are commercial decisions of the airline.

"Air India has informed that the airline has taken various steps for enhancing operational efficiency, such as fleet upgrades, mergers, the addition of new routes, and Information Technology (IT) overhauls. It has modernised its workforce through hiring, reshaping contracts, and offering exit options for untenured staff," he said.

However, the minister did not offer a direct reply to RJD member A D Singh on whether the operational and financial performance of Air India has improved after its privatisation.

"As per the Share Purchase Agreement (SPA) signed amongst the government of India, Talace Pvt Ltd and Air India, the Strategic Partner shall not remove or retrench any part of the employees for a period of one year from the closing date other than termination or dismissal of the employees for cause in accordance with applicable staff regulations and standing orders or applicable law," Mohol said.

This was in response to a query on the measures taken to safeguard employment conditions and passenger service standards under the new management.

In a separate written reply citing information submitted by the scheduled airlines, Mohol said these carriers reported a total loss after extraordinary items of Rs 5,289.73 crore in 2024-25, Rs 924.39 crore in 2023-24 and Rs 18,606.78 crore in 2022-23.

The figure for 2024-25 is provisional.

Mohol said financial and operational decisions, including resource mobilisation and debt restructuring, are managed by the respective airlines based on commercial considerations.

"Various determinants such as current seat occupancy, fuel costs, aircraft capacity, seasonal fluctuations and other relevant factors significantly impact airline ticket pricing," he added. PTI RAM DRR