Kingfisher defers salary pay out for July
16 Aug 2011
New Delhi: Perennial loss-maker, Kingfisher Airlines, has delayed payment of salaries to its employees, holding up payments for the month of July. In defaulting on staff salaries it now follows in the not-so distinguished steps of chronic defaulter, national carrier Air India.
Kingfisher staff has confirmed that the management has told them it does not have the money to clear salaries for July and has also refused to say when these payments are likely to be cleared.
At its end, airline management appears to have an explanation when it says that salaries could not be processed because of a bank strike last week, and that this has been expedited since.
According to airline staff, employees have been receiving their salaries on the seventh of each month for the last one year. Earlier, salaries would be credited on the 31st of each month.
According to industry sources, the airline has a staff strength of 6,000 and has a pay out of Rs58 crore a month.
Airline sources also indicate that the actual reason for holding back on the salaries could have been the fact that the airline paid out lease rentals for three aircraft, which it had been defaulting on for quite some time .