If there is any airline in the Indian aviation industry which is in a very bad financial shape. It happens to be the national carrier, Air India. The national carrier has been incurring a loss of Rs 20 to Rs 26 crore daily and has got a huge debt on its back which it needs to pay. It is the debt repayment which is bleeding the finances of Air India and overpowering the operational profits which the airline is making. However, there has been uncertainty over how long the airline will be able to carry its operations. It seems that the answer is positive since the civil aviation minister has said that the airline will be operational until it is privatised.
Carrier Being Readied for Stake Sale
As per a PTI report, Civil Aviation Minister Hardeep Singh Puri has remarked that Air India will be operational until it is sold to a private buyer. However, he also remarked on the grim situation of the airline saying that the carrier is registering a loss of Rs 20 crore to Rs 26 crore every day. He also said that the previous privatisation process for Air India had tanked and the government has learned from it. It is worth noting that the government is still on the task of developing an Expression of Interest (EoI) for the sale of Air India.
Air India Under Debt of Rs 80,000 Crore
The centre plans to sell its entire stake in the airline, unlike last time where it had tried to sell a partial stake in the airline, thus scaring away buyers. Air India’s losses for the year 2018-19 stood at Rs 8,556 crore and its total debt stands at Rs 80,000 crore. To recall, earlier this month, Air India CMD had said that the situation of the airline is “untenable” and it might be hard for Air India to sustain operations without government intervention.
