Govt vows to provide financial resources to help AI stay afloat

The government is committed to provide appropriate liquidity and financial resources to Air India, Union Minister Jayant Sinha said on Thursday amid delay in payment of salaries at the airline and uncertainty over its divestment plans.

In a major setback, the government's proposed 76 per cent strategic stake sale in the debt-laden carrier failed to elicit any initial bids as the deadline ended on May 31.

"We are definitely going to provide necessary liquidity and financial resources so that Air India continues its very successful turnaround plan and provide world-class customer service to passengers.

"... also to ensure that its talented and hardworking employees are paid on time for their services,” Sinha said.

The national airline is facing financial woes and has delayed payment of salaries to employees for the month of May. The payment is likely to be made on June 15.

Sinha said the group of ministers would meet soon to take appropriate decision on the future of the flag carrier. He was speaking at the inauguration function of an Air India-Boeing Accelerated AME Apprenticeship Programme.

"The government is committed to provide appropriate liquidity and ensuring all financial arrangements are in place for Air India to continue to maintain its operations at world class levels," the Minister of State for Civil Aviation said.