Air India Rules Out Layoffs, Defers Annual Increments Amid Uncertainty

Air India has announced that it does not anticipate any layoffs, despite facing significant financial challenges, including a loss of over Rs 22,000 crore last fiscal. The airline's outgoing CEO Campbell Wilson and CHRO Ravindra Kumar GP made the announcement during a Town Hall meeting on Friday, where they also stated that annual increments will be deferred by at least one quarter due to the uncertain economic environment.

The decision comes after an AI board meeting on Thursday, where cost-cutting measures were discussed. The airline has been battling a series of black swan events, including the closure of Pakistan airspace, the Ahmedabad AI 171 crash, and the US-Iran war, which have led to a sharp hike in jet fuel prices and a decline in the value of the rupee.

According to sources, the issue of Wilson's successor was not finalized during Thursday's board meeting. The CHRO reportedly said that AI will proceed with variable pay for FY26 and continue with planned promotions, while annual increments will be deferred due to current uncertainty.

The court will not resume hearing on this matter, as it is an internal decision made by Air India management. However, the airline's employees will be closely watching the situation, and the management will be taking further steps to cut costs and improve the airline's financial performance. The airline's management has urged employees to suspend discretionary spending, renegotiate rates where feasible, and defer non-critical expenditures to help eliminate wastage and leakages.