Air India: Old cash crunch story could hit salaries

Mumbai: After a detour toward what seemed like better times, Air India is back to familiar territory - it's on the cusp of such a major cash crunch that employees may not get their salaries after March 2011.
Every month, salaries for those on the Maharajah's service total 300 crores. But from November 2010 to March 2011, the airline projects a shortfall of over 1900 crore rupees. For every day of that period, it will earn 50 crores, but will spend close to 63 crores.
In addition to salaries, fuel payments are a major expense. And oil companies are no longer willing to accept the Maharajah's IOUs - outstanding payments for fuel are a whopping 2300 crores.
What could propel the airline over the next few months is 1200 crores that the government promised to pump in provided Air India realised targets aimed at making it a leaner, meaner machine.
16/12/10 Miloni Bhatt/NDTV.com

To Read the News in full at Source, Click the Headline

Categories: Air India Dec 2010