MUMBAI: Cash-strapped Air India is now finding it hard to continue operations in the absence of any equity infusion from the government so far this fiscal. The divestment-bound airline’s CMD Ashwani Lohani said in a late Saturday night Facebook post: “Air India needs to survive till it is sold. I wonder why is it so difficult for this appreciation to sink in…”
Air India management had on Monday sent an urgent SOS to the government, seeking immediate sovereign guarantee for raising Rs 2,400 crore as fresh loan to somehow keep flying till outcome of the second divestment process is known. Given the government’s tight fiscal position that makes equity infusion difficult, AI was asked to raise fresh loans. However there has been no response to that so far and AI is finding it difficult to continue operations like this.
Lohani’s plain-speaking Facebook post added: “…in this environment of disinvestment, expecting a radical improvement bordering on a turnaround is an impractical thought. That output can be given sans inputs is a grossly impractical thought.
