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Rediff.com  » Business » Air India gag order raises hackles

Air India gag order raises hackles

By Onkar Singh in New Delhi
July 10, 2009 13:49 IST
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The Air India 'gag order' that bans it employees from making any public announcements over the crisis facing the beleaguered airline, is snowballing into a political affair.

Sanjay Nirupam, Congress Member of Parliament from North Mumbai constituency, raked up the issue in the Lok Sabha on Friday, saying that the gag order was wrong as it infringed upon the rights of the airline's employees.

On July 3, Air India chairman Arvind Jadhav had issued a letter to all the employee unions and department heads asking them to desist from speaking with the media, failing which action would be taken against them.

Why Air India is in trouble

The letter said that such statements to the media have a direct bearing on the company's image and revenues.

Nirupam wanted to read out the controversial letter in the House, but the Speaker, Meira Kumar, asked him only to give the gist of the matter.

Taxpayer money to bail out Air India

"I know that office of the prime minister is trying to sort out the matter to see to it that Air India is bailed out. However, this does not mean that the management should issue such orders of taking action against trade union persons who have been exposing the management," Nirupam said on Friday.

The Congress MP said that Air India's losses for the last financial year are estimated at around Rs 5,000 crore (Rs 50 billion), up from losses of Rs 2,226 crore (Rs 22.26 billion) in the previous fiscal year.

Reports say that the national carrier is seeking an additional equity of Rs 5,000 crore, a Rs 7,000-crore (Rs 70 billion) soft loan payable after five years at a 5 per cent interest rate, and a further grant of Rs 2,000 crore (Rs 20 billion).

The issue of Air India being bailed out using taxpayer money too is also a matter of hot debate.

Air India to revamp top brass, divest partially

Asking the Air India management to withdraw the gag order, Nirupam also wanted to know the manner in which more than Rs 67,000 crore (Rs 670 billion) were used to purchase new aircraft.

Air India is in the throes of a grave crisis. The airline had earlier asked its top executives to forego a month's salary, but will now pay its 31,000-odd employees their June salaries by July 15.

Meanwhile, the Air India employees' union has moved the Bombay High Court against the gag order.

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Onkar Singh in New Delhi
 

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