Following Air India’s pilots four-day strike, 24 international and 77 domestic flights were cancelled, which, coupled with the economical downturn, severely affecting Air India’s profits this year.

Nevertheless, pilots returned to work as Praful Patel, Civil Aviation Minister, promised not to make any reductions in the salary. But according to the words of Bharat Raut, the president of four unions, the strike was finished under the pressure of the government which didn’t give the possibility for other employees to join pilots. The pilots were warned if they did not continue working, their licenses could be revoked.

International flights began to operate immediately meanwhile domestic flights are expected to begin its operation by Sunday afternoon.

Still the company suffers great losses in the amount of $1.5 billion which can lead to the fact that the government will stop financing the company. To improve the situation Air India has to restructure operations to get profit during next three years.

Last year Air India lost more than 800$ million, that is why the company was having an attempt to reduce costs $271 million during next six months. Because of the crash crunch Air India delayed with staff payments in June, company decided to move to a budget carrier in August.

The Air India’s competitor Jet Airways Ltd, the biggest airline company, went on a five-day strike, it happened the same month but earlier. More than 1 000 flights were canceled. The starting point of the issue was the termination services of two pilots – Sam Thomas and D Balaraman. They asserted that company management had changed some clause in the contract. But in sober fact their contracts terminated and in order not to loose the job they tried to negotiate with the management. As nothing eventuated, they gave an indefinite strike call. As a result, Jet Airways reconsidered the issue and offered the job to the pilots. (via Bloomberg)