Talks were held with banks and financial institutions for working capital loans to arrange the amount for payment of salaries, productivity-linked incentives (PLIs) and flying allowances to the employees, including the pilots, they said.
Sources also said the management of the cash-strapped airline was making all efforts to pay the dues of the employees very soon, including the salaries by October 31 and PLI and allowances by November 10.
Talks with the banks were initiated after negotiations between executive pilots and their other colleagues in Mumbai over the past few days.
As the negotiations failed to yield any result, the executive pilots as well as the Indian Commercial Pilots Association (ICPA) threatened of industrial action if the issue was not resolved soon.
While September salaries are due, the PLI and allowances of the three monthsAugust, September and Octoberwould be due on November 1. The PLI package constitutes 90% of the pay packet,
Meanwhile, Air India spokesperson said in a statement, AI is in discussions with financial institutions to secure additional funds to meet its current liabilities, including payment towards salary and PLI, to its employees.
He expressed confidence that efforts to fetch additional loans may succeed in a couple of days, enabling the airline to pay PLI and flying allowances by November 10.