Mumbai: India’s debt-crippled national airline is focused solely on daily survival and keeping its flights in the air, a spokesperson said on Thursday, after the government warned it would have to shut down unless a buyer is found.
Air India owes more than $8.6bn and has struggled to pay salaries and buy fuel, with losses mounting following earlier privatisation attempts.
The company is unable to pay its debts and its outlook is “gloomy”, spokesperson Dhananjay Kumar said. “We are concentrating on day-to-day operations and not focusing on the future. Whatever resources we have, we are trying to use them in an optimum manner and trying to run our flights.”
Aviation minister Hardeep Singh Puri said on Wednesday that the airline would “have to close down if it is not privatised”, adding that the government would soon invite takeover bids.
The company’s debt mountain may be hived off in a bid to make it more attractive to potential buyers, according to media reports.
Kumar said Air India is not yet in discussion with the ministry over any shutdown plans.
But in more bad news for the beleaguered airline, a planned sale of the Air India headquarters in Mumbai may be blocked after Prime Minister Narendra Modi’s party was ousted from power in Maharashtra state, local media reported. The previous state government had agreed to buy the building to help clear the airline’s debts.
28/11/19 Business Day
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Air India owes more than $8.6bn and has struggled to pay salaries and buy fuel, with losses mounting following earlier privatisation attempts.
The company is unable to pay its debts and its outlook is “gloomy”, spokesperson Dhananjay Kumar said. “We are concentrating on day-to-day operations and not focusing on the future. Whatever resources we have, we are trying to use them in an optimum manner and trying to run our flights.”
Aviation minister Hardeep Singh Puri said on Wednesday that the airline would “have to close down if it is not privatised”, adding that the government would soon invite takeover bids.
The company’s debt mountain may be hived off in a bid to make it more attractive to potential buyers, according to media reports.
Kumar said Air India is not yet in discussion with the ministry over any shutdown plans.
But in more bad news for the beleaguered airline, a planned sale of the Air India headquarters in Mumbai may be blocked after Prime Minister Narendra Modi’s party was ousted from power in Maharashtra state, local media reported. The previous state government had agreed to buy the building to help clear the airline’s debts.
28/11/19 Business Day
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