Air India (AI, Delhi International) has requested a INR24 billion rupee (USD340 million) state guarantee to raise funds needed to cover current operational expenses, Indian news agency PTI has reported.
Unnamed representatives of the airline said the guarantee was part of a previously pledged package of INR76 billion (USD1.1 billion) that Air India was supposed to receive in state-backed funding during the current fiscal year, which ends in March 2020.
Meanwhile, the state continues to work on the details of Air India's privatisation plan. The original plan ought to be finalised by the end of 2019, with the divestment itself planned for the first quarter of 2020.
The airline has been loss-making since its merger with Indian Airlines (Delhi International) in 2007. Since 2011, Air India has received an equity infusion of INR305 billion (USD4.3 billion) from the state, which wholly owns the carrier, in addition to other forms of financial support.
