Employees of the grounded Kingfisher Airlines have not received their salaries for May despite a commitment from the management, sources said. Kingfisher employees had last month agreed to return to work after a 26-day deadlock as the airline agreed to pay March salaries immediately, April salaries by October 31, and May salaries by the Diwali holiday on November 13.
The airline has paid March and April salaries as promised, but employees are yet to get salaries for May.
"3,000 employees got a Diwali gift from chairman Vijay Mallya in the form of no salary despite his commitment," airline sources told PTI.
The airline spokesperson was not available for comment.
"It is a dark Diwali for us. The management has once again failed to keep its commitment on payment of salary dues. We did not receive salaries in our account till late last night, although the management had made tall claims of clearing our dues by the festival," the sources said.
Kingfisher Airlines has an accumulated debt of over Rs 8,000 crore and losses of over Rs 9,000 crore. Mr Mallya has been scrambling to find investors to bring in fresh capital.
No operator has publicly expressed interest in taking a stake in the deb laden carrier since the government allowed foreign carriers to buy up to 49 percent of an airline.
There were hopes that a stake sale in Mr Mallya promoted United Spirits to UK drinks giant Diageo could potential free up funds for him to invest in Kingfisher. However, Mr Mallya has de-linked the United Spirits sale and problems at his grounded carrier post the $2.1 billion deal with Diageo.
"We are working towards a comprehensive rehabilitation plan including recapitalisation of the airline. It would be unfortunate if you would try to link this transaction with the airline," he told reporters on Friday.
The Centre for Asia Pacific Aviation has said a fully funded turnaround for Kingfisher would cost at least $1 billion.
(With inputs from PTI and Reuters)
The airline has paid March and April salaries as promised, but employees are yet to get salaries for May.
"3,000 employees got a Diwali gift from chairman Vijay Mallya in the form of no salary despite his commitment," airline sources told PTI.
The airline spokesperson was not available for comment.
"It is a dark Diwali for us. The management has once again failed to keep its commitment on payment of salary dues. We did not receive salaries in our account till late last night, although the management had made tall claims of clearing our dues by the festival," the sources said.
Kingfisher Airlines has an accumulated debt of over Rs 8,000 crore and losses of over Rs 9,000 crore. Mr Mallya has been scrambling to find investors to bring in fresh capital.
No operator has publicly expressed interest in taking a stake in the deb laden carrier since the government allowed foreign carriers to buy up to 49 percent of an airline.
There were hopes that a stake sale in Mr Mallya promoted United Spirits to UK drinks giant Diageo could potential free up funds for him to invest in Kingfisher. However, Mr Mallya has de-linked the United Spirits sale and problems at his grounded carrier post the $2.1 billion deal with Diageo.
"We are working towards a comprehensive rehabilitation plan including recapitalisation of the airline. It would be unfortunate if you would try to link this transaction with the airline," he told reporters on Friday.
The Centre for Asia Pacific Aviation has said a fully funded turnaround for Kingfisher would cost at least $1 billion.
(With inputs from PTI and Reuters)
