Air India urges employees to defer 'non-critical spending' amid 'tough times'; annual increments delayed by one quarter

New Delhi: Air India CEO Campbell Wilson on Friday asked the employees to suspend discretionary spending and defer non-critical expenditures as he emphasised the need to cut down on costs in these "tough times", according to sources.

The management of the loss-making airline, which has been facing multiple headwinds especially due to the West Asia conflict, told staff that layoffs are not anticipated.

Wilson, along with Chief Financial Officer Sanjay Sharma and Chief Human Resources Officer Ravindra Kumar GP, addressed the airline's employees during a townhall on Friday.

As per the sources, Kumar said Air India will proceed with variable pay for the last financial year and continue with planned promotions while annual increments will be deferred by at least one quarter in light of the uncertain economic environment.

"We don't anticipate layoffs," he said.

Calling for a relentless focus on costs in these tough times, Wilson urged employees to suspend discretionary spending, renegotiate rates where feasible, and defer non-critical expenditures.

"There must be a laser sharp focus on eliminating wastage and leakages," he said.

Airspace curbs and higher jet fuel prices due to the West Asia conflict are adversely impacting the airline, which is in the midst of an ambitious transformation plan. Operational costs have gone up significantly in recent months for the carrier.