Salary check: AI broke after March

New Delhi: Beleaguered national carrier Air India (AI), battling with a bleeding balance sheet and mounting debts, does not have the finances to pay for salaries of its employees beyond March. The startling revelation has forced the country's aviation bosses to sit up and take notice of the clear and present danger.
Senior airline executives briefed top civil aviation ministry officials about the company's deteriorating financial condition on Monday ahead of the crucial Group of Ministers meeting of AI on December 6.
Unless the government immediately releases the remaining Rs 1,200 crore equity support, which has been opposed by finance and home ministries, it would be very difficult for the airline to sustain operations, the Ministry has been told. AI CMD Arvind Jadhav is on record as saying that the airline needs an infusion of Rs 10,000 crore in equity and another Rs 10,000 crore in interest-free loan to regain financial health.
01/12/10 Tushar Srivastava/Hindustan Times

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Categories: Air India Dec 2010