Thursday, July 19, 2018

Air India needs Rs 2,121 crore for employee salary payouts

Air India has requested the government to release funds to the tune of Rs 2,121 crore for salary payouts of its employees.
"Air India was made to buy planes worth Rs 50,000 crore (in 2005-06) and once that expenses were put on us we were assured equity infusion. Now with AI not getting sold off, the infusion must restart. The airline has to pay annual interest on its loan in September worth Rs 500 crore. There is no way the loan can be serviced without equity infusion," a source told The Times of India.
The government had assured a credit of Rs 1,000 crore to Air India following its unsuccessful disinvestment bid. Nonetheless, Air India officials assured the sum will not be sufficient to levy payments to organizations such as oil companies and airport operators.