Latest Aviation News Air transport EMBATTLED AIR INDIA SEEKS 'URGENT' LOAN

Embattled Air India seeks 'urgent' loan

AFP
08/06/2018 | 320 words

Air India has announced it is seeking an urgent multi-million-dollar loan to maintain day-to-day operations, highlighting the wretched financial predicament of the country's debt-stricken national carrier.

In a statement posted on its website this week the airline said it was looking for a short-term loan of 10 billion rupees ($148 million) "to meet urgent working capital requirements".

Air India has failed to pay staff their salaries on time for the past three months, according to multiple news reports.

The plea for funds, made on Tuesday but only picked up by media late Thursday, came just days after the government said it had not received any bids in an auction for a majority stake in the beleaguered airline.

The government announced in March that it planned to sell up to 76 percent of Air India but a May 31 deadline passed without any suitors coming forward.

Airlines and other investors were put off by some of the sale terms, forcing the government to go back to the drawing board.

India's Tata Group, Singapore Airlines (SIA) and IndiGo were all linked to a takeover but subsequently ruled themselves out.

IndiGo, India's biggest airline, wanted Air India's international operations but the government refused to carve up the carrier.

Air India, founded in 1932, was once the country's monopoly airline, known affectionately as the "Maharaja of the skies".

But it has been haemorrhaging money for years and it has lost market share to low-cost rivals in one of the world's fastest-growing airline markets.

Successive governments had spent billions of dollars to keep it flying before Prime Minister Narendra Modi's cabinet last year gave the go-ahead for a sell-off.

Air India is about $8 billion in the red and reported losses of almost 58 billion rupees for the financial year ending March 2017.

 
 
 
Related articles

Indian government grounds Air India sale plans

Jet Airways rules out Air India bid

In world first, Air India crosses Saudi airspace to Israel

India allows 49% foreign investment in state-run airline

29/11 Matthieu Louvot (Airbus Helicopters): "We are the first to offer digitising all operations"
29/11 India, the future Eldorado for MRO?
29/11 Olivier Le Merrer (Safran Helicopter Engines): "This is just the start of an adventure"
29/11 First major maintenance project for a widebody aircraft at Fokker Techniek
29/11 Lufthansa Technik wants to simplify cabin seat maintenance
29/11 Indonesia aviation in spotlight after Lion Air crash
6 HOURS AGO
IKHANA has received the certification of its RWMI DHC-6-300HG STC from the Federal Aviation Authority (FAA). The RWMI (...)
11 HOURS AGO
The Lithuanian Air Force has renewed its HCare Infinite contract for its fleet of three Dauphin N3+ SAR (...)
12 HOURS AGO
TRUENOORD has delivered a new ATR 72-600 to WINGS AIR. This is the fourth aircraft that the Lion (...)
07 DEC 2018
AVOLON confirms an order for approximately 100 A320neo family aircraft, valued at $11.5 billion. The order covers 75 (...)
06 DEC 2018
ETHIOPIAN AIRLINES will participate in the creation of a business school in Ethiopia, EEIBS (Ethio-European International Business School). (...)
ALERTAVIA, the News platform for Aerospace and Defense industry Professionals.

Featured Content
AFI KLM E&M steps up a gear on CFM's LEAP
Sabena technics finally gets back on-board C-130Hs
Airbus and Thai Airways to launch a new joint venture MRO facility at U-Tapao
How Thai Airways will Expand Rolls-Royce's Trent Engine Service Network
China embarks on board aircraft recycling
LATEST NEWS   CIVIL AEROSPACE   MRO & SUPPORT   AIR TRANSPORT   DEFENCE   SPACE
Follow us
© 2018 Le Journal de l'Aviation - All rights reserved

By continuing to use the site, you agree to the use of cookies. You can find out more by following this link.  OK  Find out more