Financial Times FT.com

Air India to defer $70m in salaries

By Amy Kazmin in New Delhi

Published: June 15 2009 17:56 | Last updated: June 15 2009 17:56

Air India will pay its 31,000 employees two weeks late in the latest sign of the difficulties facing the country’s aviation industry, especially the flag carrier.

The deferral of $70m of salaries for June, which will be paid on July 15 instead of July 1, comes as the government considers a large bail-out package for the airline, which lost an estimated $800m in the last financial year.

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