Tuesday, August 01, 2017

Air India's current business 'not sustainable': Government tells Parliamentary panel

New Delhi: Air India's current business is "not sustainable" as it is neither able to generate enough cash flow nor start repaying even the principal amount on its debt, the government has told a Parliamentary panel.
With the Cabinet giving "in-principle" approval for selling stake in the loss-making Air India, a ministerial panel is working on the final contours of the proposed disinvestment.

Against this backdrop, a parliamentary panel has sought details on the Air India disinvestment decision.

Sources said the civil aviation ministry has provided a brief overview about the factors that led to the decision to sell Air India stake to the panel.

In the current scenario, Air India is not in a position to generate enough cash flow, to be in a position to start repaying principal amounts on its debt, the ministry has told the panel, according to sources.
31/08/17 Economic Times