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November 22, 2009 6:12:12 PM EST

News Story

Air India Gets Loan From SBI To Pay Dues To Pilots
Tuesday November 03, 2009 23:06:00 EST

(RTTNews) - The Air India availed a loan of Rs.500 crore as working capital from the State Bank of India, which would be utilized to pay the dues to its employees, media reports said. An airline spokesman said the dues would be paid as promised on November 10. If so, the strike planned by its pilots from November 24 may not happen. Earlier, the Indian Commercial Pilots' Association had threatened to go on non-cooperation from November 1 and the airline promised payment by November 10. A strike notice was sent by the ICPA on Monday to Air India's Chairman and Managing Director Arvind Jadhav, stating that the pilots would go on strike after November 24, if their dues are not paid by November 10 as promised by the airline. A strike will affect the airline's domestic flights.

A major grievance of the ICPA pilots was that the cash-trapped airline was paying full salaries to its 193-odd expatriate pilots on time while their allowances remain unpaid.

The spokesperson also said that the industry is passing through a tough time and appealed to the employees to understand the situation. He said that the expatriate pilots were being paid on time because they are on contract.

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