Thursday, October 15, 2020

Air India facing a very challenging financial situation: Hardeep Puri

The COVID pandemic has left national carrier Air India in a deepening financial crisis, Civil Aviation Minister Hardeep Singh Puri said in a recent letter to Rajya Sabha MP Binoy Vishwam. "Air India is also facing a very challenging financial situation," Puri said adding the airline has taken recourse to several initiatives with a view to ensuring continuance of its operations.

He pointed out that Air India has not laid off a single employee even as international and domestic carriers have resorted to cost cutting through layoffs. The Union minister added that Air India's leave without pay (LWP) scheme was a "win-win for employees and management" as it enabled employees to take a break from their office responsibilities for a defined period of time with the approval of the Air India management while retaining their employment with the company.

"The Covid-19 outbreak has very seriously impacted the airline sector and currently the airline operations of the company have taken a serious hit," he said.

The pandemic has also significantly delayed Air India's disinvestment plans. Airline industry worldwide is facing an unprecedented financial crisis due to COVID-19 and hence, it remains to be seen if a buyer would be ready to acquire Air India along with its debts. 

15/10/20 The Week

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