Air India Seeks Rs 2,400-Crore Government Guarantee To Raise Funds
Debt-ridden national carrier Air India Ltd. has sought a Rs 2,400-crore guarantee from the government to raise fresh funds to mainly meet its operational requirements, an official said on Wednesday.
The development comes at a time when the government is in the process of finalising the contours for Air India sale.
According to the official, the airline has asked for Rs 2,400 crore sovereign guarantee in order to raise money to mainly meet its operational requirements. An Air India spokesperson did not offer any comment on the issue.
Air India's net loss in 2018-19 is provisionally estimated at Rs 8,556.35 crore.
The Air India Specific Alternative Mechanism has approved re-initiation of process for sale of the government's 100 percent stake in Air India along with Air India Express and the carrier's stake in joint venture Air India SATS Airport Services Pvt. Ltd.
The national carrier received an equity infusion of Rs 30,520.21 crore from 2011-12 till date, the government said on Dec. 5. In April 2012, the then central government had approved a Turnaround Plan/Financial Restructuring Plan for Air India’s revival.
The airline has been in loss since its merger with Indian Airlines in 2007-08.