Air India on Tuesday started disbursing January salary to its around 22,000 employees after receiving Rs 200 crore (Rs 2 billion) equity from the government.
"The salaries were held back as we were awaiting funds from the government. We received Rs 200 crore (Rs 2 billion) equity (from the government) only yesterday," Air India sources said.
The employees of the loss-making national carrier usually receive salary on the last day of the month. "Employees' salary has been uploaded for payment today and tomorrow," they said.
The airline has currently 21,995 employees on its roll and it expects the number to come down to 21,000 by this fiscal. Its wage bill in 2013-14 stood at Rs 3,100 crore (Rs 31 billion).
An airline official had said yesterday that the carrier was in the process of implementing "restructured" pay scales and expect these to be in place by next month.
Saddled with a massive Rs 40,000 crore (Rs 400 billion) debt and combined losses of Rs 36,000 crore (Rs 360 billion) till last fiscal, the airline is surviving on a government bailout package, announced earlier. As part of a turnaround and financial restructuring plan approved by the government in 2012,
Air India will get equity infusion of Rs 30,000 crore till 2021.
The airline paid Rs 4,000 crore in 2013-14 as interest on loans while its revenue stood at Rs 18,000 crore.
As against this, Air India had made a profit of Rs 550 crore (Rs 5.50 billion) in 2003-2004.
Air India unions have in the past alleged that the current financial mess was due to the "anti-Air India decisions" by the previous government which include procurement of 111 planes for a whopping Rs 50,000 crore (Rs 500 billion) at a time when the airline's paid-up capital was just Rs 150 crore, besides merging the two airlines in 2006.
