With the sale of Air India, funding the loss-making airline will not bleed the government’s balance sheet in the future. The government, however, had to make allocations for AI Asset Holdings Ltd (AIAHL) for the 2022-23 fiscal in the Budget over and above a record equity infusion in the subsidiary this fiscal.
The government has cleared all liabilities of Air India and made allocations of Rs 62,057 crore to AIAHL and Rs 1,944 crore to Air India to cover losses made during the COVID period. The government has also made a provision of Rs 9,259 crore for FY23 to AIAHL ‘for servicing of loan transferred to SPV as a result of financial restructuring of Air India.’
