Air India has finally paid flying allowance for June to its pilots after the Indian Commercial Pilots' Association (ICPA) threatened to stop operations last week if the dues were not cleared immediately.
The Indian Commercial Pilots Association (ICPA) had on 17 August, in a letter to Air India’s director of finance, threatened to stop operations unless dues are immediately cleared. The association represents over 700 pilots of the airline’s Airbus 320 fleet.
Air India has been facing cash scarcity since the government stopped funding the airline following its decision to privatize it last year. The process has been shelved now as the government is working on a revival plan to make the airline “competitive” before commencing afresh on the road to privatize the airline.
The airline has deferred salaries of its employees six times in the last seven months due to the cash crunch. It paid July salaries to the employees on 14 August.
The association, ICPA in a letter on 17 August, had also stated discrimination, complaining that while the airline is paying full salaries to the others every month, it does not pay the flying allowance to the pilots and cabin crew who form the major part of the total earnings.