AI battles to pay salaries & dues

New Delhi: National carrier Air India (AI) has landed in dire financial straits and is struggling to pay staff salaries, fuel bills and airport dues.
Minister of state for civil aviation Praful Patel informed the Lok Sabha on Thursday that cashstrapped AI delayed disbursement of salaries to its employees in March as it had to meet year-end payments to the oil companies and Airports Authority of India (AAI).
The salary for the month of March, 2010, was paid to the AI employees on April 7, the minister said in a written reply in Parliament.
The postponement was necessitated due to committed March year- end payments to oil companies, Airports Authority of India, foreign and Indian vendors, and because of repayment of loans, Patel said.
He said the government is continuously monitoring the financial position and restructuring plan of AI. Replying to another question, the minister said AI has decided to close its offices at Lahore and Karachi in Pakistan due to the lack of operations to and from these cities. Patel said no losses are likely to be incurred by AI due to closing of offices at Lahore and Karachi. It would, in fact, save the cost being incurred on maintenance of offices there, Patel said.
April is also turning out to be tough for the loss- making airline as international flights were disrupted for a whole week due to the volcanic ash. Expenses incurred on providing accommodation food for stranded passengers is expected to add to the costs.
Meanwhile, the Parliamentary Standing Committee on transport, tourism and culture also submitted its report on Thursday asking the government to grant more autonomy to AI and not impose its decisions on the ailing national carrier.
23/04/10 Mail Today/India Today

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Categories: NACIL Apr 2010