Reportedly according to a senior airline official struggling air india might be forced to shut down by june next year unless it finds a buyer as “piecemeal” arrangements cannot be sustained for long. Furthermore amid continuing uncertainty over the fate of the national carrier, the official said there is also need for funds to restart operations of 12 grounded narrow-body planes.
Meanwhile the airline has a debt burden of around Rs 60,000 crore and the government is still working on the modalities for the disinvestment. Perhaps with government leaving the debt-ridden airline to fend for itself by refusing to inject funds any more amid its privatisation plans, the airline is “somehow” keeping it afloat with piece meal arrangements, which are unlikely to sustain for long. Further as per the government, it has infused funds to the tune of Rs 30,520.21 crore in the flag carrier from financial year 2011-12 till december this year.
Moreover under the turnaround plan approved by the UPA regime in 2012, the airline was to get financial assistance of Rs 30,000 crore over a 10-year period. An official said “We need at least USD 150 million (about Rs 1,100 crore) to get new engines for these 12 planes. With adequate funds not available even for normal operations, it looks difficult we will get funds for engine replacement and make these planes operational any soon".
