Flag carrier Air India may shut down in six months: Officials : AsiaNet-Pakistan

Flag carrier Air India may shut down in six months: Officials

December 31, 2019 | General, Official News | Share:

New Delhi, December 31, 2019 (PPI-OT): Amid growing economic recession since Modi government assumed charge for the second term in India, the flag carrier Air India may shut down by June next year, media reports quoting senior airline officials said. The continuing uncertainty over the fate of the national carrier has already forced the airline to ground its 12 planes due to the shortage of funds, the officials said.

The airline has a debt burden of around Rs 60 billion and the government is still working on the modalities for the disinvestment. Sounding alarm bells, the officials said Air India might well go Jet Airways way if a prospective buyer does not come on board by June next year. It is worth mentioning here that the Mumbai based Jet Airways was grounded on 17 April 2019 due to shortage of funds.

With government leaving the debt-ridden airline to fend for itself by refusing to inject funds any more amid growing economic recession, the airline is “somehow” keeping it afloat with piecemeal arrangements, which are unlikely to sustain for long, the officials added.

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Category: General, Official News