Air India finally pays May salaries

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Air India on Tuesday paid salaries for the month of May to its 40,000 employees, an official said.

"We have paid all our employees their May dues and salaries. We are very thankful to them for having shown restraint and understanding," the official told IANS.

The May salaries followed a slew of allegations and threats by unions demanding immediate payment of their dues.

"Our CMD (chairman and managing director) had written twice to the employees, explaining the reasons for delay and seeking their understanding," the official added.

Earlier, Air India's CMD Arvind Jadhav assured the employees that the salary would be paid shortly but no date was specified.

In his June 16 letter, Jadhav also said the carrier was finding it difficult to continue operations in the wake of rising debt and a cash crunch.

"Increasing debts, mushrooming interest burden, and increasing fuel costs are financially crippling the company. It is becoming difficult to sustain our operations without cash flows and revenue generation," he said.

The Air India official added that all the unions have shown support in tiding over the financial strain.