New Delhi, March 9 The Ministry of Civil Aviation informed the Rajya Sabha on Monday that, following privatization, Air India's workforce has been modernized through hiring, restructuring contracts, and offering exit options for employees without tenure.
"The employee base is younger, more skilled, and better aligned with private-sector performance metrics. Recent policy changes aim to improve retention (e.g., raising retirement ages), while operational disciplines (such as restricting business-class travel) reflect a customer-centric approach," said Minister of State for Civil Aviation Murlidhar Mohol in a written reply.
The Tata Group acquired the loss-making Air India from the government in January 2022.
Mohol stated that as a private entity, operational and financial performance are commercial decisions of the airline.
"Air India has informed that the airline has taken various steps to enhance operational efficiency, such as fleet upgrades, mergers, the addition of new routes, and Information Technology (IT) overhauls. It has also modernized its workforce through hiring, restructuring contracts, and offering exit options for employees without tenure," he said.
However, the minister did not directly respond to RJD member A D Singh's question about whether Air India's operational and financial performance has improved after its privatization.
"According to the Share Purchase Agreement (SPA) signed among the Government of India, Talace Pvt Ltd, and Air India, the Strategic Partner shall not remove or retrench any part of the employees for a period of one year from the closing date, other than termination or dismissal of the employees for cause in accordance with applicable staff regulations and standing orders or applicable law," Mohol said.
This was in response to a query on the measures taken to safeguard employment conditions and passenger service standards under the new management.
In a separate written reply citing information submitted by the scheduled airlines, Mohol said that these airlines reported a total loss after extraordinary items of Rs 5,289.73 crore in 2024-25, Rs 924.39 crore in 2023-24, and Rs 18,606.78 crore in 2022-23.
The figure for 2024-25 is provisional.
Mohol stated that financial and operational decisions, including resource mobilization and debt restructuring, are managed by the respective airlines based on commercial considerations.
"Various factors such as current seat occupancy, fuel costs, aircraft capacity, seasonal fluctuations, and other relevant factors significantly impact airline ticket pricing," he added.