National career Air India that is struggling to keep flying is likely to be forced to shut shops by June 2020 unless it finds a buyer as piecemeal arrangements cannot be sustained for long. Amid continuing uncertainty over the fate of the national carrier, there is also need for funds to restart operations of 12 grounded narrow-body planes.
With alarm bells ringing, Air India may go Jet Airways way if a prospective buyer does not come on board by June 2020. With the government leaving the debt-ridden airline to fend for itself by refusing to inject funds any more amid its privatisation plans, the airline is some how keeping it afloat with peace meal arrangements.
The government claims to have infused funds to the tune of Rs 30,520.21 crore in the flag carrier from financial year 2011-12 till December this year. Under the turnaround plan approved by the UPA regime in 2012, the airline was to get financial assistance of Rs 30,000 crore over a 10-year period.
After more than 25 years of flying, full service carrier Jet Airways shuttered operations in April due to cash crunch. In 2018-19, Air India's net loss is provisionally estimated to be Rs 8,556.35 crore.
Besides, it has a total debt of Rs 60,000 crore, half of which has already taken out of the books and parked in the special purpose vehicle, Air India Asset Holding Ltd.
