The Aviation Industry Employees Guild will file a petition in the Bombay high court this week against a decision by the National Aviation Company to cut daily outstation and tour allowances within India by 50 per cent. Nacil was formed after merging Indian Airlines and Air India last year.

Ground Reality

• National Aviation Company has cut the allowances of erstwhile Air India employees by 50 per cent and increased that of the erstwhile Indian Airlines staff by an equal percentage to ensure parity between the two
• The concerns of Air India employees could become a roadblock in the integration of the two companies, which is far from complete

The guild represents 9,000 of the total 14,000 erstwhile Air India employees. The order, dated January 11, intends to cut the allowances of erstwhile

Air India employees by 50 per cent and increase those from Indian Airlines by the same percentage in order to ensure equality.

The move comes close on the heels of threats by an AI union to go on strike and concerns on being marginalised in the merged company.

"One of the clauses in the scheme of amalgamation had referred to our apprehension stating that the amalgamation might necessitate streamlining of present employee benefits. However, we were constantly promised by

Civil Aviation Minister Praful Patel and V Thulasidas, chairman and managing director, Air India, that our interests would not be compromised," said George Abraham, secretary, AIEG.

The concerns of the AI employees could become a roadblock in the integration of the two companies which is far from complete.

"We have reasons to apprehend that further cuts would be made in our allowances and other benefits on the same pretext. This is the reason we will agitate and take to litigation," added Abraham.

However, a Nacil spokesperson, defending the company's move, said, "This is a cost cutting measure. Airliness across the world are facing financial pressures due to high fuel costs. In India, lower fares has added to the problem."

But the employees point out that they have been singled out. Indian Airlines employed about 18,000 as compared with 14,000 in Air India.