Air India gets loan for paying salaries

Air India, India's flagship and much-troubled airline, may get some relief and be able to pay the wages of its employees.
It may help it tide over an immediate crisis, but the airline isn’t out of the woods, by a mile.
It's a breather for Air India at a time when the airline is fighting a battle for survival. Public sector banks SBI, IDBI and Syndicate Bank have once again agreed to bail it out.
However, this time the loan is not for fleet acquisition but towards paying salaries to its employees, a move that will save the airline from an impending strike threat from its pilots.
Jitendra Bhargava, executive director of corporate communications, said, "We have tied up a working capital loan of Rs 500 crore for disbursement of salaries and other allowances."
The Air India management had earlier said that they would be paying all employee dues by November 10, a deadline which its 30,000 strong workforce is waiting eagerly for.
Since the promised equity infusion of Rs 5000 crore is still to come by, the government is also moving to keep the employee nerves soothed and making the right noises before the unrest escalates.
Praful Patel, minister of state for civil aviation, said, "Air India issue is to be resolved soon. Government is to support the airline by equity infusion, which is going to be reasonable. But the airline will have to cut costs. The GoM meets on November 12 to decide on the Air India issue. But the pilots and the employees should not go on strike."
03/11/09 Manisha Singhal/NDTV.com

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Categories: Air India Domestic Nov 2009, NACIL Nov 2009