Air India plans to offer voluntary retirement for a third of its 40,000 staff

Prime minister Narendra Modi’s cabinet last month approved plans to privatize the loss-making flag carrier. (Reuters)
Updated 18 July 2017
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Air India plans to offer voluntary retirement for a third of its 40,000 staff

NEW DELHI: State-owned Air India is drawing up a compensation plan to offer in a voluntary retirement of a third of its 40,000 employees, ahead of its privatization next year.
The carrier likewise scrapped its April decision to lease eight Boeing 787 wide-body aircraft after putting fleet expansion on hold, an unnamed company official said.
Prime minister Narendra Modi’s cabinet last month approved plans to privatize the loss-making flag carrier — either in parts or lock, stock and barrel — ending decades of state support. The central government in 2012 injected $5.8 billion in bailout support to keep the airline flying amidst its $8.5 billion debt (SR31.88 billion) and bloated cost structure.
Founded in the 1930s, Air India has been unprofitable since its 2007 merger with then-domestic carrier Indian Airlines. It made an operating profit of about one billion rupees in its financial year to March 16, thanks to oil prices, but still posted a net loss of 38.4 billion rupees.
Once the country’s major aviation player, Air India has lost market share to better-run private airlines such as IndiGo, whose share of the market in January stood at 39.8 percent; and Jet Airways with a share of 15.5 percent.
“Nothing has been finalized but our aim is to make the strategic sale as simple as we can,” said a second airline official said, and added that any fresh investments would be put on hold.


Saudi Arabia and Spain’s Navantia plan combat management systems venture

Updated 18 February 2019
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Saudi Arabia and Spain’s Navantia plan combat management systems venture

  • The SANNI venture will integrate and adapt Navantia’s combat management systems for Saudi navy corvette ships

ABU DHABI: State-owned Saudi Arabian Military Industries (SAMI) signed an agreement on Monday with Spanish state-held shipbuilder Navantia to set up a joint venture to provide combat systems, the new partnership’s chief executive said on Monday.
The SANNI venture, the name of which stands for SAMI Navantia Naval Industries, will integrate and adapt Navantia’s combat management systems for Saudi navy corvette ships, said Antonio Barberan at the IDEX military exhibition in Abu Dhabi.
SANNI is also in talks with other potential customers in the Middle East, he said.
SAMI owns 51 percent of SANNI, with Navantia holding the remaining 49 percent.
In November SAMI and Navantia signed an agreement to jointly manufacture five corvettes for the Saudi navy.