Tuesday, July 07, 2020

Govt puts struggling Air India on cash-and-carry basis at 4 airports from July 7

New Delhi: Citing outstanding dues from Air India, the Airport Authority of India (AAI) has passed an approval to put the national carrier on a cash-and-carry basis at four airpots from July 7. The airports include Ahmedabad, Bhubaneshwar, Chennai and Kolkata. As per the cash-and-carry rule, Air India will have to pay in advance in order to utilise the services at these airports. Airport Authority of India (AAI) GM Finance (Revenue) had communicated the decision to Air India on June 30, 2020. The AAI, however, didn’t elaborate on the amount that the national carrier has to pay to avail airport services.

Air India refused to offer any comment on the development. Interestingly, on July 4, the Executive Director, Finance, Air India wrote to AAI’s GM Finance (Revenue) as a reply to the decision taken by AAI. The letter talked about the stressed financial condition of the airline due to the coronavirus outbreak.

“Government of India has already released Preliminary Information Memorandum (PIM) for Disinvestment of Air India and the date for submitting Expression of Interest (EOI) is now extended to August 31, 2020. In the above, Government has already mentioned that a substantial portion of Air India Debts and excess of Current Liabilities over Current Assets would be transferred to Air India Asset Holding Ltd (AIAHL-SPV). Thus, it is very likely that a substantial portion of debts of Air India would be transferred to above SPV.” read the letter.
07/07/20 Pankaj Upadhyay/India Today
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