Air India delayed salary, Pak office to be shut

Air India delayed the payment of March salary to its employees by a month as it had to meet year-end expenses for various purposes, Parliament was informed on Thursday.

"The salary for the month of March, 2010, was paid to the employees of Air India on April 7, 2010," Minister of State for Civil Aviation Praful Patel said.

The above postponement was necessitated due to committed March year-end payments to oil companies, Airports Authority of India, foreign and Indian vendors, and because of repayment of loans, Patel said.

He said the government is continuously monitoring the financial position and restructuring plan of Air India. Replying to another question, the minister said Air India has decided to close its offices at Lahore and Karachi in Pakistan due to the lack of operations from these cities.

"Air India has decided to close its offices at Lahore and Karachi in Pakistan as it does not have operations to/from these stations," Patel said.

Patel said no losses are likely to be incurred by the airline due to the closure but would instead help in saving cost incurred on maintenance of the offices.

"No losses are likely to be incurred by Air India due to closing of offices at Lahore and Karachi. It would, in fact, save the cost being incurred on maintenance of offices at these stations," Patel said.