Centre May Fund Air India Debt, Asks Airline to Submit Plan

New Delhi, June 23, 2018: After its stake sale plan for national carrier Air India failed, the Centre has directed the ‘Maharaja’ to submit a plan of funds required as support from the government.

Headed by Air India chairman and managing director Pradeep Singh Kharola, a committee comprising the airline’s directors has been set up within Air India.
For the short-term, a senior Air India official told Indian Express that Rs 2,200 crore has been sought from the government as equity infusion to meet working capital requirements, including salary payouts. For the third month in a row, the airline delayed the payment of salaries in May.

The plan that is being formulated by the committee of directors will also take a call on the fleet requirements of Air India for the future given that all its existing orders have been fulfilled and the airline currently does not have any pending aircraft orders according to aviationindia.net. 

For the short-term, a senior Air India official told Indian Express that Rs 2,200 crore has been sought from the government as equity infusion to meet working capital requirements, including salary payouts. For the third month in a row, the airline delayed the payment of salaries in May.

The plan that is being formulated by the committee of directors will also take a call on the fleet requirements of Air India for the future given that all its existing orders have been fulfilled and the airline currently does not have any pending aircraft orders.

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