Government Airlines Air India, which is already facing financial constraints due to travel restrictions due to Coronavirus Crisis, is expected to suffer major losses during the financial year 2020-21. This includes cash loss and depreciation cost of assets.
New Delhi. Government Airline Air India, which is going through the process of disinvestment due to economic crisis, is expected to incur losses ranging from 9500 crores to 10,000 crores during the financial year 2020-21. The disinvestment plan of the central government could suffer a setback if Air India, which is already facing difficulties due to Travel Ban due to Corona virus epidemic. It is estimated that the company will incur a cash loss of Rs 8000 crore and the remaining loss will be due to depreciation cost of assets.
Air India to raise Rs 5000 crore from savings fund
The valuation of the company will also be reduced due to the estimated losses to Air India. Explain that the company had a loss of Rs 8,000 crore in the financial year 2019-20. At the same time, the company had a loss of Rs 8,500 crore in 2018-19 and Rs 5300 crore in 2017-18. The company is raising money to compensate for its losses and meet operational costs. In the current financial year, the company has set a target of raising Rs 5000 crore through the National Small Savings Fund (NSSF). Also, a loan of Rs 1,000 crore is being taken from three banks. According to sources, the company has so far raised Rs 4,000 crore through the NSSF. As per the provisions made in the Budget 2021, the company will raise Rs 4000 crore from the market to fund its operations in the financial year 2021-22.
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The group of employees of Air India has also bid
, Expression of Interest (EoI) has come from many companies to buy the government airline company Air India. The bidders to buy the company include Tata Group, Adani Group and Hinduja Brothers, as well as a group of Air India employees. The group of employees has bid together with private US equity fund Interups Inc. Explain that the central government had called for bids from private companies to sell their 100 per cent stake in Air India. Air India Express Limited will also sell 100 per cent stake in Air India.
