Mumbai/New Delhi, Aug 5: Air India failed to pay salaries for July to its employees within the usual timeframe due to “cash deficit”, officials and union members said even as the airline maintained there was nothing abnormal and the payments were made on Friday.
Usually, the salary is disbursed at Air India on the last day of the month or the first or second day of the next month.
Union representatives and senior officials said the impact of salary delay was felt across the board, including pilots and ground staff.
“There is no delay in salary transaction. Salary has been credited to all the employees today (Friday). In general, salary is credited in the first week. This month also, nothing is abnormal,” an Air India spokesperson said.
The airline, which has nearly 21,000 employees, has been in the red for long and staying afloat on taxpayers’ money.
The delay in salary payments has taken place at a time when the government is working on the modalities for divesting stake in the national carrier.
Salaries delayed at Air India