AI to clear salaries of a section of staff in 7 days

New Delhi: Cash-strapped Air India, which has failed to pay salaries of its employees for the last two months, has decided to clear salaries of a section of its staff in a week, said top airline officials.
“The salaries of Group ‘C’ and Group ‘D’ staff will be cleared in seven days,” said an airline executive. These categories cover over 50 per cent of the airline’s staff strength and also includes cabin crew. While the airline had paid basic salary to its employees, it had withheld productivity-linked allowance which accounts for almost 50-80 per cent of their total pay packet. The company’s annual wage bill amounts to almost Rs 3,000 crore.
Civil Aviation Minister Vayalar Ravi told The Indian Express that talks are on with the finance ministry to infuse further equity into the loss-making entity. So far, the government has pumped in Rs 2,000 crore in two separate tranches over the last two years. The Group of Ministers overseeing Air India’s turnaround had in 2009, given its assent for equity infusion of Rs 5,000 crore over the next three years, linking the financial support to time-bound deliverables.
11/06/11 Smita Aggarwal/Indian Express

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Categories: Air India Jun 2011