Air India canceled over 15 flights and bookings have been suspended for next 15 days after the talks have failed between the pilot and Management. Some 100 non-unionized pilot have gone for agitation, and have been reporting sick, against the cut in the Productivity Linked Incentives. Note that the strike by any union had already been declared illegal as the matter is under the conciliation of Labour commissioner. The cash trapped AI is under pressure to reduce it costs, which everyday owes Rs 4.7 crores in interest alone. AI wants to reduce its costs by 1300 crore a third of this has to come by restructuring the manpower cost.

Our View: This issue needs an early resolution as the passengers are losing out of this battle between management and Pilots. If this elongates the airline would see a costlier impact due to diversion of its customer traffic to other Airlines.

References:

http://timesofindia.indiatimes.com/news/business/india-business/Air-India-cancels-over-20-flights-suspends-bookings-for-15-days/articleshow/5066873.cms
http://www.ndtv.com/news/india/air_india_strike_no_headway_15_flights_cancelled.php
http://economictimes.indiatimes.com/articleshow/5067094.cms
http://www.rediff.com/money/2008/mar/15ai.htm