Air India (AI, Delhi International) is seeking a INR21 billion rupee (USD307 million) capital injection from the Indian government to meet its short-term operational needs, but will need further external financing in the mid-term.

"While the airline needs about INR2,100 crore [INR21 billion] to address its immediate working capital and other operational requirements, it could need a larger amount in the longer term to lease planes and expand operations to compete with other domestic and international airlines," an unnamed official told the Hindustan Times.

The government is likely to respond positively to the flag carrier's request. Following the failed privatisation attempt, Delhi has admitted it would need to continue financing the airline for the time being. The government has also said it would not relaunch the privatisation process for at least three to four months.

Air India has also been trying to raise capital from other sources, including the sale of its former headquarters in Mumbai and an open tender to banks for a short-term INR10 billion loan.

As of March 31, 2017, the carrier had an accumulated debt of some INR487.8 billion.