Air India is all set to send non-performing staff members on leave without pay for a period of up to five years, according to an official order. The Airline is identifying employees, based on various factors like efficiency, health and redundancy, who will be sent on compulsory leave.

Air India CMD Rajiv Bansal can now send employees on leave without pay "for six months or for a period of two years extendable upto five years," an official order said on Tuesday.

The departmental heads in the headquarter as well as regional directors are required to assess each employee "on the above mentioned factors and identify the cases where option of compulsory LWP can be exercised", the order said.

Aviation sector has been significantly impacted due to the travel restrictions imposed in India and other countries due to the coronavirus pandemic. All airlines in India have taken cost-cutting measures such as pay cuts, LWP and firings of employees in order to conserve cash flow.

India resumed domestic passenger flights from May 25 after a gap of two months due to the coronavirus pandemic. However, the airlines have been allowed to operate only a maximum of 45 per cent of their pre-Covid domestic flights. Occupancy rate in Indian domestic flights has been around 50-60 per cent since May 25. International passenger flights that have been suspended since March 23, will continue to be banned till at least July 31.