The Air India management is understood to be contemplating abolishing productivity-linked incentives of top executives as a part of cost-saving plan, sources said on Monday.
"There is a proposal to abolish productivity-linked incentives of the functional and executive directors altogether," a NACIL source said.
The National Aviation Company of India Ltd (NACIL) currently has six functional directors and over 40 executive directors.
The proposal is likely to be discussed in the Air India Board meeting to be held in Chennai on Wednesday, they said.
Air India pays around Rs 1,500 crore annually as PLI to its over 30,000 workforce.
Recently, the management had proposed to reduce the PLI of its executive-level officials, including pilots and engineers by up to 50 per cent, which was opposed by employees.
However, following a strike by its executive pilots, the management was forced to put the move on the back-burner. The airline's management then set up a sub-committee of its board to look into the issue "in totality".
With the national air-carrier likely to post losses to the tune of Rs 7,200-crore, it is now in the process of implementing a turnaround plan which includes both cost- cutting as well as revenue enhancement initiatives.