• 

  Air India

  IATA/ICAO Code:

  AI/AIC

  Airline Type:

  Full Service Carrier

  Hub(s):

  Delhi Indira Gandhi International Airport

  Year Founded:

  1946

  Alliance:

  Star Alliance

  CEO:

  Campbell Wilson

  Country:

  India

  Region:

  Asia

With the deadline fast approaching, Air India's employees who risk being evicted from staff quarters have approached the Bombay High Court to challenge the decision. Air India has been at loggerheads with employees residing in company accommodations in Mumbai and Delhi for months now. With just a month left for the eviction deadline, the employee unions are now taking the legal route.

Eviction notice

In May, India's central government had asked AI to remind its employees residing in Delhi's Vasant Vihar and Mumbai's Kalina areas to vacate the premises by July 26th. The decision, in fact, had been taken even before Air India's sale to the Tatas when the government decided that Air India's land and colonies in these areas would have to be vacated within six months after the privatization process is complete.

Since then, the airline has been locked in a disagreement with its employees residing in these areas, who feel it's difficult to move out of the apartments they've been living in for years. Last month's deadline notice did not go down well with the staff members staying there, with employee unions protesting the move and planning to approach the High Court against the eviction notices.

Challenging the decision

The airline's unions have now moved the Bombay High Court to challenge the impending eviction next month. The unions are arguing that AI's letter violates the Industrial Disputes Act, as asking employees to vacate office accommodation by July 26th amounts to a change in service condition.

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Separate writs have been filed by multiple unions, such as the Aviation Industry Employees Guild (AIEG), Air Corporation Employees Union (ACEU), and All India Service Engineers Association (AISEA), all demanding the revoking of the airline's October and May letters to staff.

As stated by a Business Standard report, the AIEG said in its petition,

“The allotment of accommodation is provided till retirement/cessation of service, according to the Air India allotment rules. There is no provision for any unilateral and arbitrary termination as is sought to be in the present case.”

The service engineers also said that Air India could not have issued a letter seeking vacation of flats pending the conclusion of conciliation proceedings, which eventually failed.

Air India has warned of penalties

Air India's land and other properties were transferred to a Special Purpose Vehicle- Air India Asset Holdings Limited (AIAHL) during the privatization discussion and were never a part of the deal with the Tatas.

Air India was on life support as a state carrier with a total debt of approx. $8 billion. While the Tata Group took on approx. $1.9 billion, all the rest was transferred to AIAHL. The AIAHL wants to reclaim the property, as it plans to sell them to pay for the debt that it took on during the sale.

With plenty of money at stake, AI warned of stern action in a memo sent out to the employees last month, stating that failure to vacate the accommodation would make the staff members liable to pay a penal rent equivalent to the sum of normal occupancy charges and double the market rent for the period of unauthorized occupancy.

Employees were also told that any non-compliance could be met with a withdrawal of retirement or service benefits and any other financial benefits.

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Source: Business Standard