Mumbai: Facing a severe cash crunch, Air India has deferred payment of March salary to its employees by a week to 7 April, instead of the usual practice of paying it within the month, airline sources said on 26 March.
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 interests on the aircraft delivered, has led to the decision, the sources said.
The 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.
The cash-strapped carrier already has over Rs16,000 crore working capital borrowings on its balance sheet, coupled with around Rs7,200 crore expected losses last fiscal.
Its borrowings have risen steeply from Rs6,550 crore in November 2007 to Rs15,241 crores in June 2009, primarily on account of interest payments on acquisition of aircraft.