Date: 14th Aug 2018.
New Delhi: In an attempt to revive cash-strapped Air India, the government may write off Rs 30,000 crore loan and pump in about Rs 10,000-11,000 crore, reported the Economic Times citing people aware of the development. Grappling with huge debts and tough business conditions, the ailing national carrier is saddled with a debt of over Rs 50,000 crore.
The financial daily quoted the people as saying the bailout package will include accumulated losses will be written off, allowing the company to clean up its balance sheet. “Small cash infusions are not making any dent. We want to put the airline in a commercially viable situation,” one of the officials cited above told the ET.
In a text message to the daily civil aviation secretary RN Choubey confirmed that talks are on for a rescue package for Air India. However, he was reticent to provide details at this stage. Worth mentioning here is that if the package okayed, this will be the second bailout for the national carrier in the last five years.
13/08/18 ET Now News