Wednesday, July 03, 2019

Air India may not have funds to pay staff salarie

New Delhi: National Carrier Air India which is incurring a daily loss of nearly Rs 20 crore has shot off a letter to the higher authorities including the PMO and the civil aviation ministry expressing its financial stress, said senior officials. The troubled airline has highlighted that it would not be able to pay salaries to its employees for much longer amid upcoming debt repayments.

The monthly salary expenditure of the airline for its nearly 20,000 employees (both permanent and contractual) comes around Rs 300 crore and the airline currently has only nearly Rs 2,500 crore left. Another official also said that given the current situation paying salary beyond October would be quite difficult for it. Officials also said that the airline management will not be seeking additional funding in the upcoming budget and the demands remain the same as made in the interim Budget.

In the interim Budget, Air India Asset Holdings Ltd was allocated Rs 3,900 crore for the previous and current financial years to service debt.  The government is working on a plan to divest its 100 per cent stake in the airline.
03/07/19 New Indian Express

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