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Air India is to delay payment of July salary to its employee till at least next week. An internal notice issued by the airline states that the salary has been delayed “due to circumstances beyond the control of the management.”
This is not the first time this year the airline employees’ salaries have been delayed. Earlier this year too, the airline had delayed salary payment. Normally employees are paid on the last day of the previous month or the first day of the month.
Sources in the airline said the management had earlier indicated that the salary will be paid by either Monday or Friday. But after the circular on August 10, they are not sure when the payment will be done.
Air India has been facing a cash crunch and had recently borrowed money from a state-owned bank to clear outstandings, including salaries. The money borrowed from the state-owned bank has to be repaid in one year.
The airline’s management has also sought close to ₹2,000 crore from the government. On July 31, the Centre proposed making an equity infusion of ₹980 crore in Air India under a turn around plan devised for the state owned carrier.
The proposal forms part of the first batch of supplementary demand for grants for 2018-19 tabled by Pon Radhakrishnan, Minister of State for Finance, in the Lok Sabha late last month.
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