Kingfisher crisis: full salary payment not a possibility now
Dailybhaskar | Oct 05, 2012, 14:41PM IST
New Delhi: Kingfisher Airlines will not be breathing easy in the short term scheme of affairs. This could be an assertion deemeed valid when one considers that the company is now not in a position to pay all of the salary that is due to the striking employees. The total due to Rs 20 crores, Rs 10 crore as dues for March have been paid, but another lot of that amount is immidiately needed to meet the expenses. Hopefully one of the banks where Kingfisher funds lie, SBI will be releasing Rs 60 crores so that the situation can get better. This decision was taken after the mergency meeting that was held in SBI Bhawan yesterday.
There were protests all over the country regarding the persistent situation at Kingfisher. Last Friday, there was supposed to be a meeting of the CEO Sanjay Agarwal with the striking employees, but it didnt happen then. Also the scheduled employee-CEO meeting for Bangalore and Chennai branches were called off after the strikers refused to meet the management. Today, employees in Mumbai took out a March towards the Kingfisher House, and in Delhi there would be a candle light vigil at the end of the day. In the midset of all this, reports suggested that around 100 employees have joined back with the current conditions, but confirmations are yet to arrive.
How the deadlock will end is also a serious concern, as Rs 120 crores is the total due for the 6 months salary that Kingfisher will have to doll out, apart from what is mentioned above. So bad is the situation, that one of the employees' wife commited suicide near Palam area of New Delhi, after her husband had not been paid for 7 months. This made the company secretary Bhagwath Raghavan resign from his post. So, the next question, how will be the next Rs 1 billion arrive to set the scenes better for Kingfisher Airlines? Vijay Mallya might well want to go easy on this luxurious lifestyle, if he is to save his ailing airliner.