Can’t pay arrears: AI

Mumbai: Air India has told the Bombay high court that it will not pay arrears amounting to Rs 220 crore to its current and retired employees owing to its financial crisis. The Maharaja’s financial health is likely to get worse according to an affidavit filed by Air India in the high court on December 8. The affidavit has been submitted in response to a writ petition filed by a group of retired Air India cabin crewmembers claiming pending arrears.
The affidavit filed by Ravi Gulgule, the airline’s deputy finance manager, states that the airline has to pay pending arrears of Rs 146 crore to existing employees and Rs 74 crore to retired staff.
The affidavit states that the airline has not paid any arrears to retired and existing crew since May 2009 because of the financial crisis. “In these circumstances it is not possible for Air India to make payment of arrears to any category of employees including the petitioners or to give any definite commitment or undertaking as to when the payments will be released,” the affidavit states.
The affidavit also lists the national carrier’s expenditure for the month of November, which is peak travel season, was Rs 277 crore from a total revenue of Rs 1,682 crore. The airline’s expenditure is projected to reach Rs 549 crore in the month of March 2011, when passenger revenues are likely to dry to Rs 1,375 crore.
20/12/10 Soubhik Mitra/Hindustan Times

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Categories: Air India Dec 2010