This is the third time in a row that the airline has delayed the payment of salaries amid cash crunch as even March and April payments were not made on time.
Debt-laden Air India would finally give out May salary to its staff till June 15. "Disbursement of salary for the month of May is delayed and the payment is likely to be made on June 15," Air India said on Friday.
This is the third time in a row that the airline has delayed the payment of salaries amid cash crunch as even March and April payments were not made on time.
Air India employees generally get paid by the 30th or the 31st of every month.
It can be noted that Air India had on June 5 floated invitation of offers seeking government-guaranteed short-term loans from banks and financial institutions of Rs 1,000 crore to meet "urgent" working capital requirements.
The loan will be drawn in June in one or more tranches, according to the bid document. The airline has asked banks to submit financial bids by June 13.
Meanwhile, Air India has sought an additional funding of around Rs 2,000 crore from the government to tide over the situation, a senior company official said.
The airline is expecting these funds next month when the government moves the first batch of Supplementary Demands for Grants for 2018-19 in the Monsoon session of Parliament, the official said.
The national carrier has already received more than Rs 26,000 crore of the 10-year Rs 30,231-crore bailout package announced by the former UPA government in April 2012.
"We have requested the government to restore equity infusion in the airline, which was stopped because of the proposed disinvestment. We are seeking an additional Rs 2,000 crore funds to deal with the present situation," the official said on condition of anonymity.
Air India had been receiving on an average Rs 3,000-4,000 crore funding per year from the government till financial year 2013-14. However, the amount got substantially reduced after that.
For 2018-19, the carrier was allocated only Rs 650 crore in view of the privatisation plan, which failed badly last month as the government did not receive even a single bid to acquire the 76 per cent stake on offer in the airline.
"It (the issue of additional funding) will be decided when the first batch of Supplementary Grants for Demands come up in the Monsoon session of Parliament next month," the official said.
Amid cash crunch, during which Air India also had to defer staff salaries, the airline borrowed Rs 6,250 crore from various banks between last September and this January.
The carrier has already approached banks and financial institutions seeking Rs 1,000-crore working capital loans, which it want to avail within this month, in one or more tranches.
(With inputs from PTI)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Air India staff may finally get their May salary till June 15")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}