Saturday, August 24, 2019

Air India wants govt to provide Rs 2,500 crore in SOS funding

New Delhi: Cash-strapped Air India has sought immediate emergency funding of about Rs 2,500 crore from the government as debt. This fiscal the divestment-bound airline, which has accumulated debt-cum-liabilities of almost Rs 60,000 crore, has not got any equity support from the Centre and is now finding it hard to meet working expenses.

“Last October, the government had approved giving AI sovereign guarantee to enable it to raise Rs 7,600 crore. We raised about Rs 5,000 crore as debt. Now guarantee of Rs 2,464 crore is remaining and we have been requesting the government to give us those funds as debt,” said an official.
The airline said in a statement, “In the absence of equity support, Air India cannot handle the huge debt service liabilities. However, our financial performance this fiscal is very good and we are moving towards a healthy operating profit. The airline, despite its legacy issues, is performing very well.”
“We have got one relief this fiscal, which is Rs 29,000 crore of our loan is being taken off our books and is being serviced by the government,” said the official.
24/08/19 Saurabh Sinha/Times of India

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