Thursday, August 23, 2018

Air India flying further into turbulence?

Mumbai: As the airline sector is struggling with high cost of fuel, cut-throat competition and financial woes, national carrier Air India is going through another phase of turmoil.

According to media reports on Thursday, Air India is on the brink of defaulting on bank loan repayments. The aviation ministry has sought Rs 500 crore from the finance ministry on an urgent basis to deal with the crisis, reports added.

The news comes after the attempt to divest Air India failed. If one goes by the amount of money Air India bleeds every year, Rs 5,000 crore on an average, the airline is the worst performer among public sector enterprises.

As of June 2017, the erstwhile Maharaja of Indian skies had bled Rs 52,000 crore of taxpayers' money, which had prompted the government to go for a divestment bid. Currently, the carrier is estimated to have a debt burden of more than Rs 48,000 crore.
23/08/18 India Today