Press Release

The Indian Commercial Pilots’ Association (ICPA) of erstwhile Indian Airlines had given a strike
notice on 23.02.2011 demanding higher emoluments and parity in pay and allowances of erstwhile
pilots belonging to erstwhile Air India.

Ever since the merger, the management is seized with the issue of bringing about parity in
emoluments / compensation harmonization of similar categories of employees of both erstwhile
Companies.

Meanwhile, the Government had appointed an Expert Committee headed by a retired Justice of
Supreme Court, Shri Dharamadhikari, to examine the principles of integration, pay parity between
all employees of erstwhile airlines and to suggest harmonized working conditions of various
categories of employees. The Expert Committee has already begun to function this week.

Till the compensation is harmonized, the employees of both the erstwhile Companies would
continue to draw their wages and allowances in term of the Settlement signed with their respective
Union/Association, prior to the merger. This means that ICPA would draw their emoluments in
term of Settlement signed with ICPA and Air India pilots would draw emoluments in term of
Settlement signed with their association.

The average earning of a co-pilot of erstwhile Indian Airlines range between Rs.2.25 to Rs.3.25
lacs per month and for a Commander it ranges between Rs. 4.00 to Rs. 5.00 lacs per month.

The strike notice given by ICPA on 23.02.2011 was seized in conciliation and the last proceedings
were held on 26.04.2011 - wherein management’s continued efforts to sit across and have a
meaningful dialogue were refused by ICPA.

The ICPA has proceeded on strike despite pendency of proceedings in conciliation and their
assurance to Hon’ble Delhi High Court. Even in case of failure of negotiations and a reference of
the disputes is made to the Tribunal; no strike is legally permitted during the pendency of the case
before the Tribunal.

The strike is therefore not legal. In view of this the management has de-recognised ICPA and
sealed their offices.

Meanwhile all efforts are being made to run the operations in a normal and smooth manner. The
Customer Care officials have been advised to keep the esteemed passengers informed of changes
in flight schedule in order to minimize any inconvenience. We urge our passengers to bear with us.

So far only 12% of the flights have been cancelled. A majority of passengers of these cancelled
flights, as desired, were accommodated in other flights.

Air India
April 27, 2011