Air India to pay Rs2.3bn in owed salaries

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Flag carrier Air India will be paying its employees Rs2.3 billion ($43 million) in owed incentives and salaries by the end of September.

This amount covers salaries of all employees for July, salaries of non-licensed employees for August, and the performance-linked incentive for licensed employees such as pilots, cabin crew and engineers for May.

India's civil aviation minister Ajit Singh says he is keeping a close watch on the situation, and has asked Air India to make updated payment of all dues to its employees. The carrier on its part, has been making the effort to complete payments with its improvement in revenue, he adds.

Last week, Singh asked the cash-strapped carrier to submit a detailed plan on how it intends to increase its market share in the domestic passenger sector. He also asked the state-owned carrier to come up with strategies to best utilise its aircraft.

Several strategies to restructure Air India's debt of around Rs220 billion are underway after approval from the Indian government in April. The moves include converting around half of the debt from short-term loans to long-term ones, and turning another Rs70 billion into non-convertible debentures.