Monday, March 18News That Matters

Unpaid employees of Air India may soon get their salaries

Unpaid employees of Air India may soon get their salaries for the month of April as the government on Thursday said it will resume equity infusion in the ailing flag carrier, according to a report in The Times of India.

The infusion had been stopped after the government decided to sell the airline. The government also said that it will give guarantee for the Rs 1,000-crore loan given to the national airline, which the banks had revoked after attempts to divest it were announced in 2017, the report suggests. Moneycontrol could not independently verify the report.

“Employee will be paid their salaries as the fund flow of government through equity infusion will begin and the loan guarantee (for Rs 1,000-crore) will be given,” said a senior aviation ministry official told the newspaper.

 The government is also examining the failure of the Air India divestment attempt and are in touch with transaction advisor — Ernst & Young, the report adds.

On Wednesday, it was reported that Air India has delayed payment of salaries to its employees for the third consecutive month. The airline management had also not communicated to the staff as to when the salaries for the month of May will be paid.

“We have still not received our salaries for May. Moreover, the management has not informed us till date as to when it will be disbursed. This is the third month in a row that the airline has delayed the salaries,” a person aware of the development had told PTI.

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