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carrier, Air India, flying with an injection of more than £689 m
($1.1 bn). The large financial aid package would be paid out in
phases, Aviation Minister Praful Patel said. In return the airline
must agree to restructure the company. It will have to boost its
revenues with cost cuts that total £407 m ($650 m) spread over the
next two years, the minister added. The airline reported a loss of
$875 m in the fiscal year ending in March. Wage cut concerns Hundreds
of Air India pilots went on strike in September to protest against
management plans to cut pay incentives. The strike was called off when
Mr Patel said the grievances would be dealt with. Possible wage
cuts, he said, were only one aspect of cost reduction. Mr Patel said
he met representatives of Air India staff unions to discuss
cost-cutting avenues. "The unions were very understanding and are
aware of the problems," he said in a news conference. Air India
employees were willing to cooperate with management to "forge a way
out of the current crisis", he said. The airline has already showed
signs of recovery, Mr Patel said, with air traffic showing an upward
trend in the last month.
