Kingfisher Airlines offers Rs. 5,000 stipend to employees

Kingfisher Airlines offers Rs. 5,000 stipend to employeesKingfisher Airlines Ltd has offered an emergency stipend of Rs. 5,000 to its employees posted at airports, who have not received salaries for the last two months.

Kingfisher's aircraft are out of service due to maintenance issues. It has been canceling flights on routes covering the cities of Delhi, Mumbai, Bangalore, Chennai, Hyderabad, Kolkata and Kochi, besides four international flights to Bangkok in Thailand.

Company staff has been dwindling as employees had lost faith in the airlines future. The airline had delayed making salary payments for August and September upsetting many employees and making them think about leaving their jobs.

Kingfisher chief executive Sanjay Aggarwal informed the company employees that the company is not able to pay them in full. "As communicated to you earlier, we were on track to disburse salaries this past week. Unfortunately, we got hit by a couple of large unanticipated payments which had to be addressed on an emergency basis," he wrote in an email to the employees.

Kingfisher is also facing severe fuel shortages as it has been available to pay its fuel bills. OIL companies have threatened to stop the supply of fuel to the company if it is unable to pay its dues.

Kingfisher Airlines has approximately 7,000 employees and its monthly wage bill stands at Rs. 40-50 crore.