After Air India, Kingfisher delays salary payment

New Delhi : After government-owned Air India, Kingfisher Airlines has delayed salaries of its employees. The UB Group-controlled airline has not paid salary for July.
“We have not been paid for July. The management said it does not have the money, and has not given any date for the payment,” said a Kingfisher Airlines executive requesting anonymity.
An airline spokesperson did not respond to phone calls but in a text message said: "Due to the bank strike last week, the salaries could not be processed. This has since been done."
The salaries hadn't come till the report was being filed.
For the last one year, employees have been crediting their salaries on the 7th of every month. Earlier, the company used to pay on the 31st. The airline has a staff strength of 6,000 and spends Rs 58 crore on salaries a month. According to the first quarter financial results, it has Rs 173.66 crore under the employees cost head, which has increased from Rs 163.40 crore during the same quarter last year.
The executive said the airline had not paid the lease rental for three of its aircraft and the leasing company had asked the airline to return these.
13/08/11 Mihir Mishra/Business Standard

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Categories: Air India Aug 2011, Kingfisher Aug 2011