Air India employees to get May salary by Thursday: Official (Lead)

June 20th, 2011 - 9:05 pm ICT by IANS  

New Delhi, June 20 (IANS) National carrier Air India Monday said the May salaries of its employees would be disbursed by Thursday.

“The salaries would be disbursed shortly. The latest would be by June 24 Thursday,” a senior Air India official told IANS.

According to the official, the funds granted by the government on June 11, will be used in disbursing the May salaries to the employees.

“We have received the funds from the government and we are in the process to start disbursing it at the earliest,” said the official, adding that not just the workers, but also the top management of the company had not received any pay.

Earlier, Air India’s chairman and managing director Arvind Jadhav wrote to the employees assuring them that the salary payments would be made in a short while, without specifying any date.

“I am sorry that your salary statement could not be released on June 8. However, with help from the government, we have got the funds released and your salaries would be credited to your accounts soon,” Jadhav wrote in a letter to employees Thursday.

In his letter, Jadhav also said that the carrier was finding it difficult to continue operations in the wake of rising debt and a cash crunch.

“Increasing debts, mushrooming interest burden, and increasing fuel costs are financially crippling the company. It is becoming difficult to sustain our operations without cash flows and revenue generation.”

The AI official added that all the unions have shown support to tide over the financial strain that the company was facing and there were some miscreant elements who were disseminating false reports of delay in the carriers’ operations.

“It’s all rumor mongering and there is no substance in such reports. Our employees have shown support and they understand the situation,” the official said.

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