NEW DELHI: Banks have refused to pay nearly Rs 2,500 crore to Air India as financial package for which the government had earlier given guarantee. It is part of the financial package of Rs 5,000 announced by the government last year. Now, the national carrier is banking upon the government for financial help.
Air India sources said the airline has already used nearly Rs 2,500 crore out of the total guarantee given by the government last year. A senior official said the banks have refused to give further support on the guarantee and hence AI wants government’s help to get out of the crisis. The cash-strapped airline has also conveyed it to the government it would not be able to pay its employees October onwards due to its poor financial condition.
