AI ends post-retirement freebies to discourage VRS stampede

NEW DELHI: To stem the attrition of employees, national carrier Air India (AI) has decided to stop extending post-retirement benefits such as free passages (tickets)

NEW DELHI: To stem the attrition of employees, national carrier Air India (AI) has decided to stop extending post-retirement benefits such as free passages (tickets) and medical facilities to those seeking voluntary retirement from the company.

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AI, like other Indian carriers, has seen employees leave for greener pastures abroad, especially to join airlines in the Gulf or poached by domestic rivals.

“I strongly feel that the company should stop extending post retirement passages and medical benefits to its employees who seek voluntary retirement or resign from the service except due to extreme medical reasons. This should be applicable also in cases where the application of voluntary retirement is pending at present,” chairman and managing director Ashwani Lohani said in an internal note seen by HT.

Sources said government has barred fresh hiring in the company except for pilots and cabin crew, which has added to AI’s problems.

“The company is passing through difficult times at present. The attrition of various categories of staff, including those in the licensed category, is a matter of extreme concern as presently the company has been restricted from recruiting staff on regular basis,” Lohani wrote.

“The company is losing experienced employees when it is most wanted,” said an official.