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Air India counts losses, delays salaries by 15 days

Jun 14, 2009 07:56 PM IST Business Business
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New Delhi: Air India will pay 30,000 employees their June salaries 15 days late, the national carrier announced on Sunday. "The salaries of June will be paid on July 15 due to the resource crunch that the company is facing," PTI quoted an unnamed Air India spokesperson as saying. The company said it has been forced to delay salaries but assured it won’t layoff employees. The payment of productivity-linked incentive too has been delayed by 15 days, according to a circular issued by Air India management. Air India's losses for the last financial year are estimated at around Rs 4,000 crore, up from Rs 2,226 crore in the previous fiscal. Reports say the national carrier was planning to seek Rs 5,000 crore as additional equity, Rs 7,000 crore as a soft loan payable after five years at a five per cent interest rate, and a grant of Rs 2,000 crore. However, top Air India officials have denied the figures, but said they are working on similar lines. Maintaining that the financial crisis was foreseen last year, industry sources said the acute situation could have been avoided had Air India delayed the ongoing deliveries of aircraft, like its competitors Jet Airways and Kingfisher Airlines did. (With inputs from PTI)