Air India commits to clear bank, aircraft lease dues in 15 days

IN THE THREE YEARS UP TO 201718, AIR INDIA HAS RECEIVED A FUND INFUSION OF ₹7,565 CR

NEW DELHI: Debt-ridden national carrier Air India has committed to clear dues to banks and aircraft leasing firms in a fortnight by which time it expects to get fresh capital infusion from the government, a company official said.

The carrier, which recently failed to generate interest from potential investors in a privatisation attempt by the government, has sought about ₹2,121 crore from the government this fiscal as part of an ongoing bailout package.

The company has already received ₹650 crore this fiscal for meeting operational expenses. In the three years up to 2017-18, Air India has received a fund infusion of ₹7,565 crore.

“We are confident of getting the equity infusion and shall clear all dues to our lenders and business partners by 15 August,” said the official who spoke on condition of anonymity.

The official was referring to the “first reminder” issued by some lenders and aircraft leasing firms urging the company to clear the dues.

Three banks and two aircraft leasing firms have served default notices on Air India over the last few weeks, reported on Monday quoting news reports. The government, which sought to privatise the carrier, had to put off the transaction as high jet fuel prices and the intention of retaining 24% stake post sale, dampened investor enthusiasm. Minister of state for civil aviation Jayant Sinha had last week informed Lok Sabha that the government is committed to improving the operational efficiency and performance of the airline.

The company is reeling under accumulated debt, which scaled ₹48,781 crore at the end of March 2017.

Reuters