Air India (AI, Delhi International) will get an unspecified amount of financial aid from the government to ensure the timely payment of salaries and operational continuity, minister for civil aviation Jayant Sinha has been quoted as saying by the Hindustan Times.
"We are definitely going to provide Air India with necessary liquidity and financial resources so that there is a successful turnaround and the airline continues to provide world-class services to its passengers and that staff of the airline are paid on time," Sinha has said.
The carrier had earlier delayed the payment of some salaries for June but planned to disburse all due remunerations by June 15. Earlier, Air India has issued a Request For Proposals (RFP) for a short-term loan of INR10 billion rupees (USD148.3 million), backed by Indian government guarantees, to meet its urgent working capital requirements.
The Indian government is also willing to re-evaluate the terms of privatisation of the airline. During the first attempt, in which the state sought to sell a 76% stake, no bids were submitted.
"The group of ministers constituted to oversee Air India’s strategic divestment will analyse all matters before them and an appropriate decision will be taken," Sinha has said.
The Indian flag carrier has amassed some INR500 billion in debt as of March 2017.
