Air India delays salaries yet again
Debtladen Air India has not paid salaries to its employees for the month of July and is yet to communicate the possible date of payments, sources said...
Mumbai: Debt-laden Air India has not paid salaries to its employees for the month of July and is yet to communicate the possible date of payments, sources said. This is at least the fourth time this year that salaries have been delayed. There were delay in payments in March, April, May and June. The national carrier, which is facing acute financial crunch, is yet to send out any specific communication on when the payments are likely to made, sources said.
Air India has more than 11,000 permanent staff. Sources at Air India told PTI that last month's salaries are yet to be deposited in the bank accounts of employees. An airline spokesperson said salaries for the month of July are likely to be disbursed in a couple of days. Generally, the airline disburses salaries by 30th or 31st of every month. The delay in salary payments also comes against the backdrop of the government seeking Parliament's nod for Rs 980 crore as supplementary grants for equity infusion into the airline.
On July 26, Minister of State for Civil Aviation Jayant Sinha told the Lok Sabha that there was a short delay in the payment of salaries for May and that the same was paid subsequently. "Salaries have been paid to all employees, including the salary for the month of June, 2018, which was paid on July 2, 2018," the minister had said.
At the end of March 2017, the national carrier had a debt burden of more than Rs 48,000 crore. Last month, the Civil Aviation Ministry said that Air India has received Rs 27,195.21 crore worth equity infusion under the Turn Around Plan (TAP) and the Financial Restructuring Plan (FRP) approved back in 2012.