Air India to get government aid to pay staff salaries, run operations

Mumbai: The government will give debt-laden national carrier Air India money to help pay staff salaries and maintain its operations, minister of state for aviation Jayant Sinha said on Thursday.

“We are definitely going to provide Air India with necessary liquidity and financial resources so that there is a successful turnaround and the airline continues to provide world-class services to its passengers and that staff of the airline are paid on time,” Sinha said on the sidelines of an event organised by Air India Engineering Services Ltd.

Air India has not paid salaries to a large number of its employees for the month of May, due in June. An Air India spokesperson earlier blamed the non-payment on a delay in the government’s equity infusion into the airline. The spokesperson, however, added that the airline is expected to make the salary payments by 15 June. Air India has also floated a tender to raise ₹ 1,000 crore from banks to meet its working capital needs.

Sinha said the government is drawing up plans for equity infusion into the airline, which had been frozen after the announcement of strategic divestment of the carrier. The government drew a blank on its plans to divest 76% stake in Air India. “The group of ministers constituted to oversee Air India’s strategic divestment will analyse all matters before them and an appropriate decision will be taken,” Sinha said.