Monday, August 17, 2020

Airports Authority of India, airport firms face cash crunch

New Delhi: State-owned Airports Authority of India (AAI) and private airport operators are seeking funds to meet their working capital requirements, as restrictions to air traffic have crippled their revenue. The AAI has already taken a credit line of Rs 1,500 crore from State Bank of India to fund its working capital requirements, including paying salaries. People in the know said private operators are under huge financial duress as revenue isn’t enough to meet their working capital requirements.

This is the first time the AAI is borrowing money to fund its working capital costs. While revenue from its own airports has dwindled, the revenue share it gets from the privately run Delhi and Mumbai airports are not coming now. In the past more than two years, the government had taken its profit as dividend. To be sure, the company still has cash reserves of about Rs 15,000 crore, but it has opted for a bank loan as interest rates are low, said people in the know.
17/07/20 Mihir Mishra/Economic Times
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