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Air India delays salary by 2 weeks after loss
By siliconindia
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Wednesday, 17 June 2009, 21:19 IST |
9 Comments
15 crore every day, close to 5, 400 crore a year.
For the first time in its history, the airline company has declined the salary of the employees. With a running loss of 15, 200 crore every day out of its 16,000 crore working capital, the company is only left with 800 crore in hand. The payments to the Airport Authority of India, and other vendors for buying fuel amount to of 1400 crore.
"There is no proposal with the Ministry of Civil Aviation till today on what and how much AI needs. Once we get it, the proposal would have to be scrutinized and then passed on to the finance ministry. It is unlikely that any financial assistance can be given in the Budget this time," sources said.
Initially, the company was seeking a bailout package of 4000 crore from the government. But as the losses have arisen, the demand of the package may fall between Rs 12,000 - 15,000 crore.
"The government is working on a package to take the flag carrier out of the woods but it could not be to the tune of 14,000 crore," said Praful Patel, Civil Aviation Minister.
The contractual workers of Air India have also announced to meet the chief labor commissioner to discuss the issues over better payment of around 300 contractual security and commercial staff of the company as the workers went on the strike from June 1 demanding better pay package, medical and other benefits at Delhi, Amritsar and other centers.