Air India to borrow Rs 600 Crores to pay salaries

Corporation Bank to provide loan so that AI can paythe wages to its 31,000 employees

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The state-owned airline has arranged a short-term loan of Rs. 600 Crores from the Corporation Bank to pay wages, including salaries for January that are more than a week overdue. For Air India, which has a wage bill of Rs 3,000 crore, late payment of salaries has become a regular affair for almost a year now as per a report in the ET.

A Corporation Bank official said, "The talks with Air India for a debt of Rs 600 crore were initiated by the airline a couple of days ago and the disbursement is likely to happen by Wednesday.” The airline’s previous loans have been repaid, the person said, adding, “Cash flow is not a problem with Air India and thus repayment is not a concern right now and we expect good returns.” 

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