SP's Airbuz - - News Briefs -

In the cur­rent fi­nan­cial year i.e. 2016-17, the na­tional car­rier Air In­dia will get only ` 80 crore as ad­di­tional bud­getary sup­port from the gov­ern­ment. This is much less than the air­line’s de­mand of ` 2,200 crore. Air In­dia is on a bailout pack­age of ` 30,000 crore sanc­tioned ear­lier by the gov­ern­ment of which the air­line has re­ceived ` 23,993 crore in eq­uity in­clud­ing ` 1,713 crore in­vest­ment so far.

The al­lo­ca­tion this year has been cur­tailed de­spite the fact that Ash­wani Lo­hani, Chair­man and Manag­ing Di­rec­tor of Air In­dia, had writ­ten to the gov­ern­ment that on ac­count of the air­line’s huge debt bur­den, re­duced fund­ing by the gov­ern­ment might de­rail the turn­around process of the air­line and put its ex­pan­sion plan in jeop­ardy. The na­tional car­rier has a debt bur­den of ` 46,000 crore and has an­nual in­ter­est li­a­bil­ity of around ` 4,000 crore. The chal­lenge be­fore the air­line is re­duc­ing the debt bur­den. High in­ter­est and main­te­nance ex­penses have re­sulted in the air­line post­ing a net loss of ` 3,837 crore in FY16.

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