Saturday, June 16, 2018

Centre will give funds to Air India to pay salaries, maintain operations, says Jayant Sinha

Minister of State for Aviation Jayant Sinha on Thursday said the central government will give the national carrier Air India funds to help pay staff salaries and maintain its operations, reported Livemint.

Last week, the airline sought proposals for short-term loans worth Rs 1,000 crore from financial institutions and banks to meet its urgent working capital requirements. The move came after the government failed to attract any bids for the sale of its 76% stake in Air India before the May 31 deadline.
“We are definitely going to provide Air India with necessary liquidity and financial resources so that there is a successful turnaround and that staff of the airline are paid on time,” Sinha said on the sidelines of an event organised by Air India Engineering Services Ltd in Mumbai. He, however, did not mention the amount that would be provided to the airline.

The government has allocated the airline Rs 650 crore for the current financial year, according to The Economic Times. But the airline has requested an additional Rs 2,000 crore.
Sinha said the government is also drawing up plans for equity infusion into the airline, which wasn frozen after the announcement of divestment. “The Group of Ministers constituted to oversee Air India’s strategic divestment will analyse all matters and an appropriate decision will be taken,” Sinha said.