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PTI 10 Aug 2018, 03:59 PM India

Air India says July salaries may be paid by next week

Mumbai, Aug 10 (PTI) Debt-ridden Air India, which has

has not paid salaries to its employees for the month of July,

today a said it is making "all efforts" to disburse them by

the next week.

The salaries have been delayed due to the reasons

beyond the airline's control, it said in a communication to

its staff.

This is the fifth consecutive month that the national

carrier has failed to pay salaries to its employees on time.

Generally, the airline disburses salaries by the 30th

or the 31st of every month.

There were delay in payments in March, April, May and

June as well.

"We regret to inform the delay in payment of salaries

for the month of July due to circumstances beyond the control

of the management," Air India general manager for human

resources said in the notice to staff, adding, "However, all

efforts are being made to make the payments by next week."

Air India has more than 11,000 permanent staff.

The national carrier, which is facing acute financial

crunch, is set to get an additional funding of Rs 980 crore

from the government.

On July 26, minister of state for civil aviation

Jayant Sinha told the Lok Sabha that there was a short delay

in the payment of salaries for May and that the same was paid

subsequently.

"Salaries have been paid to all employees, including

the salary for the month of June, which was paid on July 2,"

the minister had said.

At the end of March 2017, the national carrier had a

debt burden of more than Rs 48,000 crore.

Under its turnaround plan and financial restructuring

plan approved by the government in April 2012, Air India is to

receive a budgetary support of Rs 30,231 crore over a 10-year

period ending March 2021.

"Air India has received an equity infusion of Rs

27,195.21 crore till date," Sinha told the Lok Sabha last

month.

In the current fiscal year, the state-owned airline

has received an equity infusion of Rs 650 crore till June.

Meanwhile, two of its unions - Indian Commercial

Pilots Association (ICPA) and Indian Aircraft Technicians

Association (IATA) - today wrote to the airline chairman and

managing director, Pradeep Singh Kharola, raising the issue of

salary delay, saying that it does not augurs well for the

organisation.

"It is disheartening to note that the salary has yet

again been delayed for the fifth consecutive month. Financial

uncertainty is a source of frustration, anxiety and stress

which results in undue fatigue, adversely impacting flight

safety and the overall performance levels of employees," the

ICPA said in its letter.

It alleged that the crisis which the airline is facing

has been attributed to employees, market conditions and

government policies, among others, while, "The genesis of

these problems are poor management and poor functioning of the

airline."

It further said that "until salaries and all

emoluments are paid on time, the ICPA has decided to operate

flights under protest due to harassment on account of unpaid

dues and serious concerns of flight safety".

In its letter, the IATA said that the delay in wages

for the past few months has been creating "unrest" among the

employees, adding, "We request you (Kharola) to take immediate

steps to address employees concerns." PTI IAS RAM SS

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(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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