Air India Needs To Pay Off Rs 12,000 Crore Debt And Raise Funds For 23 Grounded Planes Next Year

Government-owned Air India has made a few changes to its in-flight announcement services. Now, the airline has made it mandatory for their crew to chant ‘Jai Hind’ after every announcement.

Last year the government even sought to find private owners for the airline to give it a boost. However, no players showed any interest in purchasing the debt-ridden airline. Times of India reported that in total Air India needs to pay off Rs 12,000 crore in loans- Rs 4,000 crore of working capital and rest aircraft purchase loan in 2019 to 2020.
The Maharaja airlines had a total loan worth Rs 55,000 crore, half of which has been transferred to a special purpose vehicle to reduce its annual debt servicing of Rs 4,500 crore. A source told the publication that it will need help from the government to pay off its debts following which its annual debt servicing will be in manageable range of Rs 1,500 to Rs 2,000



crore.

23 of its aircraft are currently not flying due to requirement of engines. Therefore, it is trying to raise funds that will help meet its requirement of putting engines on planes.

Once the grounded aircraft are back in system, they will be utilised on different routes.

he airline’s chairman Ashwani Lohani told TOI a direct connection “to Los Angeles from this winter will be seriously looked at.”
Air India’s Delhi to San Francisco direct flights are a hit among the users. The airline wants its grounded planes to start flying as soon as possible so that they can start a direct flight from Delhi to LA before any other market player. It will also help generate revenue for the turnaround.
At present, raising funds for the 23 aircraft is a priority for Air India because even if the next government decides to sell off AI even then it needs to be in a good shape to find a prospective buyer.