The Prime Minister, Dr Manmohan Singh, assured over 30,000 Air India employees of the payment of salary and perks at the earliest. Cash-strapped Air India has not been able to pay its employees in full for some time.

Intervening during question hour in the Lok Sabha, the Prime Minister said, “Air India does not have resources to pay salary. Whatever be the final outcome of the Group of Ministers, I can assure the House that the Government will find ways and means and ensure that wages and salaries are paid.” The Prime Minister assured that salaries, along with productivity-linked incentives for the month of June and July, would be paid soon.

The Finance Minister, Mr Pranab Mukherjee, is heading the GoM that is considering the financial restructuring and turnaround plan for the state-owned airline. The GoM will take a final view after it gets the report from the Committee of Secretaries chaired by the Cabinet Secretary.

Replying to various questions on behalf of the Civil Aviation minister, Mr Vayalar Ravi, the Minister of State in the Prime Minister's Office, Mr V Nararayanswami, said that Air India's loss for last fiscal 2011-12 is expected to be Rs 6,994 crore.

As per the latest estimates, the ailing carrier was facing a net cumulative loss of Rs 20,320 crore between April 2007 and March 2011.

Air India is going through turbulent times with massive cumulative loss and debt burden of about Rs 67,000 crore. The national carrier has to repay Rs 20,415 crore worth of loans before the end of this fiscal year, official sources said.

Air India is seeking an upfront equity infusion of Rs 6,600 crore from the Government for immediate relief and another Rs 5,736 crore to fund cash deficits spread over 10 years till FY 2021.

>Shishir.s@thehindu.co.in

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