Mumbai: Air India has reached an agreement with its officers’ grade cabin crew which is expected to cost annual an additional Rs2 crore by way of revision of salary and allowances.

Discussions were initiated with the employees — cabin crew-officers grade and flight engineers since 2005. After protracted discussions, the understanding was arrived at in respect of the cabin crew (OG) on 29 May 2009, according to Jitender Bhargava, executive director, Air India’s corporate communications.

The company intends to regularise the interim changes that had been effected in salary/flying allowances from 1 January 1997.

Bhargava was clarifying reports which had put the additional burden on Air India at Rs170 crore per annum.

The exexutive director also said as has been the case with other category of employees, the current understanding is also subject to various approvals and, therefore, it cannot be construed as final. It is subject to availability of funds as the airline is currently going through a difficult financial phase, he said.

The government had mandated Air India in July, 2004 for carrying out revision of pay scales and related allowance of for its employees effective 1 January 1997. Negotiations commenced in 2005 and agreements for salary and allowances revision were entered into for various categories of employees by 2007-08.