The airline has deferred payment to its employees by a week to 7th April, instead of the usual practice of paying salaries within the month
Facing a severe cash crunch, Air India has deferred payment of its March salary to employees by a week to 7th April, instead of the usual practice of paying it within the month, airline sources told PTI today.
This is the second time in the recent past that the national carrier has had to defer salary payments. In June last year, it had postponed salaries by 15 days due to non-availability of funds.
The cash crunch caused by the ongoing recession facing the aviation industry and other committed payments, including interest on the aircraft delivered, has led to the decision, these sources said.
NACIL has been incurring losses since its inception with Rs2,226 crore loss in 2007-08 and about Rs5,500 crore loss in 2008-09.