Air India Is Not Permanently Shutting Down From October; Flag Carrier Dispels Rumours

Rumour mills recently began to circulate a purported image of a press release by national carrier Air India announcing its permanent shut down on 1 October 2018.

Air India has confirmed that the news is false and that it is considering taking legal action against the perpetrators of the false news.

The ailing airline has requested for fresh cash infusion from the Union government several times over the last few years, with its most recent request of Rs 3,000 crore being turned down by the Finance Ministry in the absence of a clear turnaround plan.

Air India has not been able to pay employee salaries, which has prompted the Civil Aviation Ministry to request the bailout package.

The Finance Ministry had turned down the request citing the failure of previous bailout packages, and the government is now in the process of selling two subsidiaries – Air India Engineering Services Limited (AIESL) and Air India Air Transport Service Limited (AIATSL), which is expected to lighten the debt burden.

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