Without buyer, Air India might be forced to shut down in six months: said by official
After 25 years of flying, full service carrier Jet Airways shuttered operations in April due to cash crunch. Air India might be forced to shut down by June next year unless it finds a buyer as “piecemeal” arrangements cannot be sustained for long, according to a senior airline official.
The official said Air India might well go Jet Airways way if a prospective buyer does not come on board by June next year. The airline has a debt burden of around Rs 60,000 crore and the government is still working on the modalities for the disinvestment.
It has infused funds to the tune of Rs 30,520.21 crore in the flag carrier from financial year 2011-12 till December this year, as per the government.
AISAM has approved re-initiation of process for the the government’s 100 per cent stake sale in Air India along with Air India Express and the carrier’s stake in joint venture AISATS.
Further official said that, it would take “at least” six months to complete the transaction in the eventuality of an investor coming on board, provided the sale process kick starts early next month and continued that currently 12 narrow-body Airbus A320 planes are on the ground for want of engine replacement and are unlikely to be back in operations in the immediate future.
Finally the official said that seven of the eight wide-body planes, which were grounded for engine and other engineering related issues, are back in operations. The eighth one is expected to start flying soon.
