Thursday, October 18, 2018

Air India gets Rs 1,000 crore from National Small Savings Fund: report

Cash-strapped Air India, which was asking the government for more funds, has reportedly received an equity infusion of Rs 1,000 crore from the National Small Savings Fund (NSSF). The state-run airline will now avail of its unused sovereign guarantee to raise another Rs 500 crore as a loan next week, the Times of India reported.

"We got this equity infusion recently. The government had given us sovereign guarantee to raise Rs 3,500 crore as loan. We have raised Rs 3,000 crore so far and will avail the remaining amount by next week. The financial position is now slightly better after the equity infusion," an official told the daily.

The beleaguered Maharajah, reeling under a debt burden of over Rs 48,000 crore, is scrambling for cash infusions ever since the failed disinvestment attempt earlier this year.

Air India, which survives on Rs 4,600-crore annual bailout package, serves a mere 12.4 per cent of the domestic passenger traffic, and competes with aggressive private sector peers like IndiGo, SpiceJet and Jet Airways who are constantly baying for passengers.
18/10/18 Business Today
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