No Equity support to Air India: Ministry of Aviation

Story Highlights
  • Funding of various losses of Air India got rejected by the Aviation Ministry
  • Investors predict growth potential of AIr India post COVID-19

The government has rejected the equity support for struggling Air India. The airline got financial support in the budget to bear its various kinds of losses. The burden shot up due to the COVID-19 pandemic.

Earlier the Aviation ministry forwarded the financial proposal to the Finance ministry. But this time it declined the request of the cash-strapped airline. Moreover, the airline has been funding its expenditure through working capital debt. The load enhanced due to repatriation flights run by the airline which brought people from countries like, U.S. and Canada back to India.

In 2018, the Government of India failed to get any bids for 76% in the carrier. Now, it is offering a 100% bid for the airline. The current COVID-19 crisis made it an uphill task to get bids for the national airline. Despite all these issues, the government has expectations of selling Air India.

Investors project the growth potential in Air India, post COVID-19, and rather see the pandemic as an opportunity. However, the situation is still blurry due to the indefinite amount of time taken for the complete redressal of the pandemic.

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