Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » India
1-min read

'Not Focusing on Future': As Shutdown Fears Bite, Air India Focuses on Day-to-day Survival

Air India owes crores of rupees to vendors and has struggled to pay salaries and buy fuel, with losses mounting following earlier privatisation attempts.

AFP

Updated:November 28, 2019, 5:12 PM IST
facebookTwitter Pocket whatsapp
'Not Focusing on Future': As Shutdown Fears Bite, Air India Focuses on Day-to-day Survival
Illustration by Mir Suhail (News18.com)

Mumbai: India's debt-crippled national airline is focused solely on daily survival and keeping its flights in the air, a spokesman said on Thursday, after the government warned it would have to be shut down unless a buyer was found.

Air India owes crores of rupees to vendors and has struggled to pay salaries and buy fuel, with losses mounting following earlier privatisation attempts. The company is unable to pay its debts and its outlook is "gloomy", spokesman Dhananjay Kumar said.

"We are concentrating on day-to-day operations and not focusing on the future," he told AFP. "Whatever resources we have, we are trying to use them in an optimum manner and trying to run our flights."

Aviation Minister Hardeep Singh Puri said on Wednesday the airline would "have to close down if it is not privatised", adding the government would soon invite takeover bids. The company's debt mountain may be hived off in a bid to make it more attractive to potential buyers, according to media reports.

Kumar said Air India was not yet in discussion with the ministry over any shutdown plans. However, in more bad news for the beleaguered airline, a planned sale of the Air India headquarters in Mumbai may be blocked after Prime Minister Narendra Modi's party was ousted from power in Maharashtra, local media reported.

The previous state government had agreed to buy the building to help clear the airline's debts. Founded in 1932 and formerly India's monopoly airline, the company was once known affectionately as the "Maharaja of the skies".

But it has been haemorrhaging money for more than a decade and has lost market share to low-cost rivals in one of the world's fastest-growing but most competitive airline markets. State-run oil companies halted fuel supplies to Air India in August over delinquent payments. The firms agreed to lift the suspension the next month after talks brokered by the government.

The local aviation sector has been stuck in a slump since the collapse of Jet Airways earlier this year. Successive governments spent billions of dollars to keep Air India operating before the first failed bid to sell off the airline last year.​

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Next Story
Next Story

facebookTwitter Pocket whatsapp

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results