Debt Recast To Be An Important Component of Air India’s Turnaround, Aviation Secretary Says
Government to decide fate of the state-run carrier in 3 months.
Restructuring Air India Ltd.’s debt would be an important part of turning around the troubled carrier, Aviation Secretary RN Choubey said on Thursday. The civil aviation ministry is examining NITI Aayog’s recommendations and should be able to decide on how to proceed with the restructuring plan in the next three months, he added.
“…If we have a solution to debt restructuring, that would be helpful. Debt restructuring would be one important component of the process,” Choubey told reporters in New Delhi.
The airline has a debt of around Rs 50,000 crore. On May 31, Bloomberg reported that government is considering to privatise the state-run carrier. The potential buyer may be asked to absorb loans of about Rs 20,000 crore linked to aircraft purchases, the report added.
According to another civil aviation ministry official, the chairman and managing director of Air India is in talks with four to five banks for the airline’s debt restructuring.
“The government is considering all possible options for Air India’s revival, and make it profitable and viable,” Choubey said.