Air India gets Rs 1,200 crore, will pay pending salary, dues

New Delhi: The government pumped in Rs 1,200 crore as equity in cash-strapped Air India on Monday. The airline will now pay Rs 250 crore as salary to all employees by Wednesday - except the 400-odd pilots of erstwhile AI, who have been on strike since May 7. The rest will be used to pay vendor dues. With the latest infusion, the Maharaja has got Rs 1,867 crore as equity this fiscal.
"We will use Rs 150 crore from the equity infusion and Rs 100 crore from our ticket sales to pay the performance-linked allowance and allowances for the month of February and basic salary of March, 2012, to the employees by Wednesday. The rest will be used to partially clear the airport, oil and tax dues," said a senior official. An AI pilot, who is still flying, said the move to deny pay to the striking Indian Pilots' Guild (IPG) may create more problems. "Everyone has been working without pay for months. The period for which AI is now planning to pay is when IPG's striking members were also flying and there's no reason why they should not be paid," the pilot said.
05/06/12 Saurabh Sinha/Times of India

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Categories: Air India Jun 2012