Debt-ridden Air India receives Rs 500-crore guarantee from Centre

Express News Service |

Published: 21st December 2019 02:47 AM

Air India (File photo | Reuters)

NEW DELHI: The debt-ridden Air India received a guarantee worth Rs 500 crore from the government to secure fresh funds for operational requirements.

Faced with an acute financial crunch, the national carrier had sought Rs 2,400-crore guarantee from the government to raise fresh funds to mainly meet its operational requirements.

Early this month, Air India Chairman and Managing Director Ashwani Lohani had said in a Facebook post, “Air India needs to survive till it is sold.”

In another development, sources said the government is likely to invite preliminary bids for the stake sale in Air India next month.

Making its intent clear towards disinvestment of the national carrier, the government had recently asserted in Parliament that it will be difficult to run the carrier if it is not privatised.

Neo engine deadline

The Directorate General of Civil Aviation might extend the January 31 deadline for replacing neo engines by the Indian carriers Indigo and Go Air. Following repeated snags, the regulator had in November asked the airlines to get the engines changed.

The aviation regulator has said it would take a call in mid-January after assessing the situation.

The DGCA had set a deadline of January 31 for changing at least one engine.