Aug 8: Debt-laden national carrier Air India has delayed the payment of salaries of its employees yet again. As per reports, Air India is yet to disburse the salary of its employees for the month of July. The carrier has been failing to make the payment of salary on time for more than just this year, with the current delay being the fifth in a row.
Previously, Air India also faced difficulties in disbursing the salaries during the month of March, April, May and June. Minister of State for Civil Aviation Jayant Sinha had previously acknowledged the delay, adding that the salaries were though paid subsequently. Air India usually disburses the salary of its 11,000-odd employees during the 30th or 31st of every month.
An airline spokesperson has said that the salary for July is likely to be disbursed in a couple of days. However, there was no communication sent out to the employees regarding the delay of payment. Indian Commercial Pilots Association had previously responded to the issue of delay of salaries, calling it disheartening for the employees. In its letter to the carrier, the union has had urged for making payments on time and avoiding delays in the future.
It’s also to be noted that the delay comes in midst of the government seeking parliament for supplementary grants worth Rs 980 crore as equity infusion into the airline. Equity infusion of around Rs 28,000 crore was received by Air India under the Turn Around Plan (TAP) and the Financial Restructuring Plan (FRP) approved back in 2012, as disclosed by Civil Aviation Ministry. Air India had a debt burden of over Rs 48,000 crore as of March 31, 2018.