Air India Express Fires 30 Employees Amid Mass Sick Leave

Air India Express has taken decisive action, terminating the employment of at least 30 cabin crew members. This move comes in response to nearly 300 employees calling in sick, leading to the cancellation of 85 flights and substantial inconvenience for passengers.

The airline, a subsidiary of Air India under the ownership of the Tata Group, has issued an ultimatum to remaining employees to return to work promptly or face similar consequences.

The turmoil stems from dissatisfaction among employees regarding new employment terms, including alleged disparities in treatment and modifications to compensation packages. Sources reveal claims of unfair allocation of job roles and discrepancies in promotions, exacerbating existing tensions within the workforce.

These grievances have intensified amid the ongoing merger with AIX Connect, formerly AirAsia India, further complicating the operational landscape for the carrier.

This development presents fresh challenges for the Tata group, following recent disruptions experienced by its full-service carrier, Vistara, due to pilot protests over various issues. The conglomerate faces mounting pressure to address internal concerns and restore stability across its aviation ventures.

In response to the crisis, Air India Express has assured passengers of efforts to minimise inconvenience and maintain operational continuity. The airline pledges to operate 283 flights while enlisting support from Air India on 20 routes to mitigate disruptions.

Passengers affected by cancellations or delays exceeding three hours are offered full refunds or rescheduling options without additional fees, underscoring the commitment to customer satisfaction amidst organisational upheaval.

"Increasing disposable incomes, easing visa requirements, a growing number of airports, and enhanced air travel connectivity are boosting international travel. The government's focus on making India a hub for tourism is also expected to provide a fillip to inbound traffic. Thus, international passenger traffic is likely to clock a CAGR of 10-11% over the next four fiscal years, against a mere 5% CAGR in the four years prior to the pandemic." Manish Gupta, Senior Director, CRISIL Ratings, said in a statement.

While expressing willingness to engage with cabin crew members to address grievances, the airline emphasises the gravity of the situation, holding individuals accountable for actions leading to widespread disruption. Termination letters cite a premeditated and coordinated absence from work, resulting in significant operational challenges, reputational damage, and financial losses for the company. Such actions are deemed contrary to the public interest and violate both legal regulations and the airline's employee service rules.

"To capitalise on the growth in international travel, Indian airlines are investing in widebody and long-range narrowbody aircraft for network expansion, adding new international routes, and introducing long-haul non-stop flights to key destinations. Aided by the planned fleet addition and network expansion strategy, Indian airlines could log a CAGR of 14-15% in the international segment over the next four fiscals, taking their market share to 50%." Ankit Kedia, Director, CRISIL Ratings, said in the report.

The Air India Express Employees Union (AIXEU) has voiced concerns over management's response, alleging mismanagement and unequal treatment of staff. However, the airline asserts its non-recognition of any employees' union, further complicating efforts to resolve internal conflicts through collective bargaining.

Amid escalating tensions, the regional labour commissioner has intervened, acknowledging the legitimacy of employees' grievances and highlighting apparent violations of labour laws.

In correspondence to Air India's leadership, the commissioner condemns management's conduct during conciliation proceedings, citing attempts to mislead and disregard legal obligations.

Urging corrective measures and the establishment of a high-level committee to address grievances, the commissioner underscores the imperative of fostering harmonious industrial relations to ensure the long-term viability of the airline.

The Tata group faces critical decisions regarding employee relations, operational stability, and maintaining customer trust. The outcome of ongoing negotiations and the implementation of corrective measures will significantly impact the airline's reputation and future prospects within the fiercely competitive aviation industry.

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