Question : AVERAGE COST PER EMPLOYEE OF AIR INDIA



(a) whether Air India is the most over-staffed airline in the world;

(b) if so, whether Air India`s average cost per employee is over Rs.5 lakhs per year;

(c) if so, the details thereof;

(d) the average cost of per employee in Air India in comparison to other public sector undertakings; and

(e) the steps proposed for making Air India viable.

Answer given by the minister

THE MINISTER OF CIVIL AVIATION (SHRI SHARAD YADAV)

(a), (b), (c) and (d): Based on the fleet strength of 23 aircraft of Air India, the number of employees per aircraft is 763. The number of employees vis-a-vis the number of aircraft in Air India is high because, unlike the foreign airlines, there is hardly any outsourcing or service subsidiaries and fleet augmentation has not taken place. During the year 1999-2000, the average cost per employee was Rs.5,02.035 excluding crew allowances and Rs.6,04,279 with crew allowances.

(e): Air India has taken following steps for make it viable:-

(i) Freeze on external recruitment in non-operational categories;
(ii) Several posts of India based officers abroad have been abolished;
(iii) Rolling back of retirement age from 60 to 58 years;
(iv) Redeployment of employees from non-operational to operational areas;
(v) Two voluntary scheme have been notified viz. shorter working week for a period of two years extendable upto five years.