NEW DELHI: The chief of India's embattled Kingfisher Airlines promised Monday to give employees their long overdue pay cheques after government authorities unfroze the carrier's bank accounts.
Kingfisher Airlines, which owes millions of dollars to suppliers, lenders and staff, has appeared increasingly in danger of collapse.
But in the first piece of good news for months, liquor magnate Vijay Mallya told staff in a letter that authorities unfroze its bank accounts Sunday after the airline paid tax arrears, allowing him to resume wage payments.
"Please stand by me and strengthen my hands," Mallya urged workers in the letter.
"We have managed to keep the lights on in our days of darkness with adversity from every conceivable direction," he said, adding Kingfisher's recovery will "not be possible without your continued efforts, commitment and goodwill."
Mallya, who calls himself "the king of good times," said the Bangalore-based airline would pay junior staff on Wednesday. Pilots and engineers will be paid next week.
The employees have been waiting months for their salaries and at least 60 pilots have already left to work with rivals, according to local media reports.
Most of India's private airlines are struggling despite a fast growing market due to high fuel costs and cut-throat competition.
But the problems of Kingfisher, which has never turned a profit since it was founded in 2005, are reckoned to be the worst, partly due to overly rapid expansion, analysts say.
The airline has experienced a sharp descent, running just 20 flights daily down from its previous 64.
Mallya's other companies, including his flagship United Breweries, which makes Kingfisher beer, and United Spirits, are in profit and both have a major presence in the Indian market.
Mallya has said he is seeking fresh capital to avert closure of the airline which is reeling under a $1.5-billion debt load.
Last week, an Indian newspaper reported he was considering a plan to give up control of United Breweries to brewing giant Heineken even though he earlier insisted he would not "cross-subsidise" the carrier from his other businesses.