Air India trouble increased, if not found buyer will be closed in 6 months!

Government-run air services are not taking the name of Air India’s financial woes. If it does not find a buyer soon, then in next 6 months, the government airline AI could be closed.This claim has been made by a senior Air India official.Meanwhile, Civil Aviation Minister Hardeep Singh Puri has stated that his ministry will try to issue a letter of interest for Air India in the coming few weeks. He said, “Air India is a first class airline but there are no two opinions about its privatization. We are not subject to any timeframe. We are trying to disinvest Air India at the earliest.” Earlier, a senior Air India official claimed that 12 small aircrafts were standing, requiring capital to run them again.

Government-run air services are not taking the name of Air India’s financial woes.

Air India trouble increased, if not found buyer will be closed in 6 months!
Air India trouble increased, if not found buyer will be closed in 6 months!

The airline has a debt of around Rs 60,000 crore and the government is working on disinvestment practices.Not disclosing the name, the official cautioned that Air India could also go the Jet Airways route if no prospective buyer is found by June next year.According to the official, the government has refused to invest more capital in the debt-ridden company amidst privatization plans. Because of this, the airline has to “somehow” operate by arranging capital in pieces.It is not likely to last long.He said that we had sought a government guarantee of Rs 2,400 crore from the government to meet the operational needs, but the government only gave a government guarantee for Rs 500 crore. The official did not expect too much of the government to get investors given the “economic situation”.

 

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