AI unions, managers agree to talk for cost cuts

Mumbai, Oct. 14 -- They are talking to each other, not talking at each other. Hitherto hostile managers and employees at state-owned Air India have decided to sit across the table to decide on wage cuts that could help the bleeding carrier heal itself.

Their objective is to save Rs 3,000 crore a year and boost revenue by Rs 2,000 crore per year. The first meeting of the committee comprising mangers and union representatives is set for Thursday.

Civil Aviation Minister Praful Patel talked of equity infusion to reduce the airline's Rs. 15,000-crore debt load and also met unions on Wednesday. "It (employee cost) is going to be part of the overall cost reduction. It is upto them whichever way they achieve it but cost cutting is inevitable," he said.