Reportedly debt-ridden national carrier, Air india, is still to be out of the woods and the information emerging now is that it may not be in a position to make salary payments even to its employees, come October this year. Meanwhile even otherwise, there have been delays in releasing employees’ salaries. Furthermore the airline takes 10 days or more than the due date to pay the monthly emoluments to its staff and the average payout on account of salaries is around Rs 300 crore.
Meanwhile besides salaries, there are debt repayments too that the airline has to meet and even here, the information is the company may not be able to make these payments after October. Currently the government is keen on liquidating its entire 100% stake in the carrier if there is a suitor. Apparently when last reported, the airline is in possession of Rs 2,500 crore out of that amount and this is what is being projected to last till October.
Moreover there is the other question on what stand the government may take on the issue of payment of Rs 9,000 crore that the airline has to make this year as part of its debt repayments. Hence with the government keen on a 100% disinvestment in the airline, it is highly unlikely that it may agree to foot that bill as well and there may be other ways available to the airline, like rolling over a part of the debt repayment to the next year.
