Air India has asked the government to infuse Rs 2,100 crore into the airline to meet
its operational requirements, according to a Mint report citing sources.
This amount will help the national carrier meet only its short-term capital
requirements, and Air India could have to look to the market again to raise for fleet
and other expansion plans, the report said.
"While the airline needs about Rs 2,100 crore to address its immediate working capital
and other operational requirements, it could need a larger amount in the longer term to
lease planes and expand operations to compete with other domestic and
international airlines," a source told the paper.
The airline has a net debt of over Rs 50,000 crore.
"The government is expected to infuse equity into Air India to fund its operational and working
capital requirements," an aviation ministry official told Mint.
Air India borrowed Rs 6,250 crore from various banks between September 2017 and January 2018, PTI reported
last month. The airline also had to delay payments to its staff.
Air India has already received more than Rs 26,000 crore under the bailout package announced
by the government in 2012, PTI reported.