Failed disinvestment plan: Air India delays staffs' last month salary

Salaries of employees of national carrier Air India have been delayed for the month of May after the government failed to get even a single bidder for its disinvestment plan. Airline Head Quarter staff told news agency ANI that they are not getting any communication from management as to when they will get salary. However, earlier salaries were paid on time either on 30 or 31 of every month.

In a major setback to the Air India disinvestment process, the government said no initial bids were received for the proposed strategic stake sale of the debt laden airlines by the deadline. The deadline for submission of Expression of Interest ended on May 31st.

The government has proposed to offload 76 per cent equity share capital of the national carrier as well as transfer the management control to private players, as per the preliminary information memorandum.

The transaction would involve Air India, its low cost arm Air India Express and Air India SATS Airport Services Pvt Ltd. The latter is an equal joint venture between the national carrier and Singapore-based SATS Ltd.

Earlier this month, the government had extended the EoI submission deadline to May 31 from the previous date of May 14. The qualified interested bidders were to be intimated on June 15.

(With PTI inputs)