Air India head Raghu Menon was censured on Wednesday by the government for his proposal to offer leave without pay to 15,000 employees.
Highly placed sources said Oil Minister Murli Deora took exception to Menon's proposals during a meeting of the Federation of Indian Airlines and Civil Aviation Minister Praful Patel to resolve the crisis arising out of mounting fuel bill arrears.
Deora cut Menon short when he today again talked of the need to 'rationalise' the workforce to trim losses arising out of negative growth and high fuel cost.
"There should not be any layoffs. Why are you raising it now," sources quoted Deora as telling Menon.
The oil minister than widened his message on 'no-job' cuts to the other participants--Kingfisher Chairman Vijay Mallya and Jet Airways Executive Director Saroj Dutta -- present at the meeting.
Patel, taking a cue then interjected to say the airlines should ensure that jobs are protected.
"The industry should not take such steps and expect government support," sources quoted him as saying at the meeting.
Later talking to reporters, the civil aviation minister said the airlines should protect jobs.
"We have spoken to the airlines, they will have to be sympathetic to employees. We have told them we will try and help them further."
Last week, Menon had announced that Air India was planning to offer three to five years leave without pay to 15,000 of its employees in an attempt to cut costs.
The employees would have the option to return to service at the last drawn pay and seniority, if they so wished after the end of the period.
Jet Airways, which had sacked 1,900 employees, had to reinstate them after it came in for strong criticism, particularly from Deora.
