After Jet Airways, India’s national helicopter carrier Pawan Hans has found itself in the middle of a financial crisis. In a circular released for its employees, the company stated that it will not be able to pay salaries for April due to an” uncomfortable financial position.”
According to industry reports, Pawan Hans that operates a fleet of more than 50 helicopters, has reported a net loss of ₹89-crore for the financial year of 2019. As per the circular, there is a mismatch in its revenue income, which is based on its business volume and its expenses that mainly comprise of staff salaries. The carrier is also said to have an outstanding amount of over ₹230 crore lying with customers.
As a part of its recovery process, the company has deferred employee salary for the month of April — The employee union has deemed this decision by the company as “inhuman.”Additionally, it will be reviewing alternative methods of cost-cutting and improving the carrier’s efficiency.
Meanwhile, the government of India initiated strategic disinvestment of Pawan Hans but has failed to attract any buyers.