Pawan Hans, the helicopter service company based in New Delhi, has been facing a financial crisis for some time now. An official circular recently informed the staff that they will not be receiving their salary for the month of April.
With the revenue having declined drastically in 2018-19, the Company has suffered a net loss of about Rs 89 crore this financial year. A huge gap between the business volume and the expenses has been seen. The outstanding with customers that remains to be cleared, has gone up to more than Rs 230 crore.
Other cost cutting measures will also be put in place. Salaries have been delayed till the time certain outstanding dues are cleared. However, the Pawan Hans Employees Union has called this step inhuman, especially as quite a few employees are due for wage revision.
The members of the Union have stated that they would not hesitate to go to the CAG and CBI with their concerns if their grievances are not heeded.
In the year 2018, the Government had called off a fresh bid for 100 per cent stake sale in Pawan Hans. Presently, the Company operates a fleet of around 46 helicopters.
Whether Pawan Hans will also meet the same fate as Kingfisher Airlines and Jet Airways, is something that we will have to wait and watch.