Thursday, December 06, 2018

Debt-laden Air India may approach Centre for financial help if airline fails to get Rs 500-cr bank loan

Debt-laden Air India may turn to the Centre for financial help in the wake of non-availability of short-term debt worth Rs 500 crore from various banks, said media report.

If the state-run Air India's plan to raise the money from banks is successful, the airline will utilise the proceeds to meet its working capital requirements and service the interest on outstanding loans, reported Mint.

“The loan should materialise in the coming fortnight or so. If the short-term loan doesn’t come through, we will wait for the (equity) infusion from the government, which will happen during the winter session of Parliament,” an Air India official, requesting anonymity, was quoted as saying by Mint.

The cash-strapped Air India has been struggling to cut its costs and explore ways to enhance revenues for bringing down the debt burden. The national carrier is also trying to raise funds to meet its capital requirements.

Earlier on Monday, an official said that the government expected to mop up about Rs 9,000 crore by selling off land and real estate properties of Air India.
06/12/18 First Post