Air India unable to pay allowances to employees

NDTV

Mumbai, 22 October 2010:  It’s not easy being on His Majesty’s Service. The Air India Maharajah is enjoying some new cash. Pilots and other employees? Not so much. After three long years of scarlett balance sheets, Air India is delivering better numbers. Ticket sales for April to August are up by 24 per cent compared to the same period last year.

 

But for the last five months, employees including pilots, engineers and cabin crew have not been paid their allowances on time. Productivity-linked incentives and flying allowances can make up to 80 per cent of a pilot’s salary.

 

This month, they were told their allowances would be 15 days late. A union then wrote to the airline’s management, threatening non cooperation.  By this evening came the reassurance that all dues would be paid by November 4. 

 

Air India says it’s going through a cash crunch because it has recently seen a series of major expenses including some new aircraft and the settlement of fuel bills. Irritated employees say that hasn’t stopped the management from shelling out for some big hires.

 

Two Chief Operating Officers have been hired for 4.2 crores; a Chief Training Officer has come on board with an annual salary of 1.2 crores. The airline hopes to do brisk business during the festival season. Whether there’ll be smiling faces to welcome you on board is a bit up in the air.