Air India in a statement on Friday said that they have asked its senior management to voluntarily forgo their salaries and productivity linked incentives in July because of an ongoing liquidity crunch.

Arvind Jadhav, the chairman and managing director of the firm, has requested all the executives in the level of general managers and above to forego their salaries in July. Earlier this month the firm decided to defer the salaries and incentives of all employees for the month of June, by 15 days.

According to reports, the airline is now facing a possible industrial unrest with employees. They are getting threat agitation from the employees in case the salary for the month of June is not given by this month-end.

The request of Jadhav is strictly applicable to all senior employees of Air India, to its subsidiaries and also all those who are on deputation and on contract.

Jadhav addressed in a communique to all corporate directors, heads of strategic business units, executive directors and general manages today. In his speech he also voiced concern over the financial situation of the company.