Business

Air India needs more than 2100 Cr Loan from Govt. to pay Vendors

Air India needs more than 2100 Cr Loan from Govt. to pay Vendors: Well, reports are coming that State-owned Carried Air India is in a problem because they need to pay around $309 Million dollars to their vendors and for that, they are seeking for the loan from the Indian government. Some reports are coming that they need to make money for the fiscal year 2018-19 to make pending payments to its vendors, a source at the airline told Reuters on Monday. Overall, it isn’t a good thing and they need to make things alright.

Some reports are coming that the Air India owes around Rs. 1800 Crore to its vendors, including lessors and banks that have demanded payment from the beleaguered airline. Some reports are coming that they are looking for the loan from the government’s unsuccessful efforts to find a buyer for its 76% stake. You all may know that they are looking for the loan and their stakes are out and they need someone to take care of it.

You all should know that the airline expects to receive the additional equity within the next 7 to 10 days after which it will be able to clear all dues. You all should know that this is above the 6.5 billion rupees it has already received for the year. India last month shelved a plan to sell a majority stake in Air India due to lack of interest from bidders, in the latest setback in its ambitious efforts to rescue the ailing airline that has survived for years using taxpayer funds.

In the end, the government will continue to support the loss-making of the airline which means that they can get their loans soon. Three banks and two aircraft leasing firms have served default notices on Air India over the last few weeks they are gathering the attention of people and which is making concerns about the state-owned carrier’s finances and credit-worthiness.