Debt-laden national carrier Air India is set to get another set of government funds to pay salaries and run operations, reports Mint. The announcement was made by Union Minister of State for Civil Aviation Jayant Sinha on Thursday (14 June).
The national carrier hasn’t paid its staff their salaries for the month of May that was due in June with a spokesperson blaming the government’s delayed equity infusion into the cash-strapped airline for the non-payment. They also added that payments are expected to be made this week. In order to meet its capital requirements, Air India has also floated a tender to raise Rs 1,000 crore from banks.
We are definitely going to provide Air India with necessary liquidity and financial resources so that there is a successful turnaround and the airline continues to provide world-class services to its passengers and that staff of the airline are paid on time.Union MoS for Civil Aviation Jayant Sinha
Sinha said that the government was finalising plans fore fresh equity infusion into the airline which had been delayed on account of the Government’s announcement of strategic disinvestment.
The government had drawn up plans to divest as much as 76 per cent in the loss making flag carrier.
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