The chances of turnaround for Air India Ltd’ became slimmer as the national airline sought Rs 2000 crore in debt to make up for a delay in infusion of government funds to the tune of Rs.3,500 crore in the current financial year.
A part of this fund was to prepare for increased competition from new entrants in the Indian market like AirAsia Bhd and Singapore Airlines Ltd that seek to start airlines in India in tie-ups with the Tata group.
Etihad Airways PJSC too is trying to move in after purchasing a stake in Jet Airways (India) Ltd. The rights to increase the number of its flights to and from India granted by New Delhi to Etihad ahead of the deal, will help the airline become a preferred alternative for people seeking to fly into or out of India—and hurt Air India’s international operations.
The government has pledged $6.5 billion to cash-strapped Air India in equity infusion till 2021, but the airline has received no funds from theRs.3,500 crore promised to it in this fiscal year. It has to continue expanding its fleet with pe-ordered Boeing Dreamliner 787s and repay aircraft loans.
Read full report here, Mint