Air India, the public sector aviation major in India, is facing worst ever cash crisis and has urged its employees to forego their July month pay so that AI can cut the cost as the company is fighting for its survival.

The Chairman and Managing director of the Air India, Arvind Jadhav said that all the employees of aviation industry have not faced any problem yet due to recession as they have been receiving their salaries, wages and PLI month regularly while many people had lost their jobs in another industries.

He further added that they should consider themselves fortunate as they have not felt the heat of the adverse impact of the economic meltdown so far.

Due to high fuel price, weak demand, poor load and irrational pricing, Air India had lost nearly Rs 4,000 crore in 2008-09.

Last week Air India officials said that they had postponed the June salary and performance-linked incentive (PLI) of its 31,000 employees by 15 days.