Wednesday, October 26, 2016

After a Rs 105-crore profit, AI staff gets Diwali bonus

In the backdrop of Air India making a profit of Rs 105 crore in the financial year 2015-16, the national carrier on Tuesday handed Diwali bonuses to its staff by releasing an ad-hoc amount. At the same time, the management warned that this should not be construed as an improvement in the company’s financial position.

Air India has since 2013 cut salaries by 25% which the airline’s chairman-managingdirector, Ashwani Lohani, recently promised to reinstate in phases. The airline has been able to achieve a modest operating profit of Rs 105 crore in the financial year 2015-16, which is a first since the merger of Indian Airlines with Air India in 2007-08.

Vinod Hejmadi, director (finance), Air India, in a letter to employees dated October 24, cautioned employees that the road to complete turn-around is still far away, as the company had incurred a net loss of Rs 3,837 crore in 2015-16 mainly due to interest on loans.

“The company continues to face severe cash crunch and is still resorting to market borrowings. It also depends on government for equity support to meet its operational commitments,” Hejmadi said.
26/10/16 Aditya Anand/Mumbai Mirror