NEW DELHI: Next fiscal will be a crucial one for Air India as Rs 8,000 crore of aircraft purchase loan have to be paid off then. While almost half of AI’s total loan of over Rs 55,000 crore is being transferred to a special purpose vehicle to reduce its annual debt servicing of Rs 4,500 crore, the airline will in all need to pay Rs 12,000 crore towards paying off loans — Rs 4,000 crore of working capital and rest aircraft purchase loan — in FY 2019-20.
“Next year AI will need support from the government to pay off this huge debt burden. From the fiscal 2020-21, AI’s annual debt servicing will be in the manageable range of Rs 1,500-2,000 crore. We can be in operating profit from FY 2021,” said a source.
The airline is currently also trying to somehow raise funds as 23 of its aircraft, a mix of narrow and wide body, are not flying for want of engines.
