Air India is likely to run out of money and may not be able to pay its employees beyond October, reported The Economic Times, citing senior officials.
The report comes amid upcoming debt repayments and the government's plan to sell its 100 percent stake in the airline.
“The government had provided Air India sovereign guarantees amounting to Rs 7,000 crore and the airline has about Rs 2,500 crore left, which the airline will utilise soon,” a senior official was quoted as saying in the report.
The airline would utilise the Rs 2,500 crore to clear dues of vendors including oil companies and airport operators and to pay salaries for a few months, the report said, adding that the airlines' salary outlay is a little over Rs 300 crore per month.
A senior civil aviation ministry official, however, told ET that the ministry has not sought anything extra for the troubled airline in the upcoming Budget.
The airline is staring at debt repayments of Rs 9,000 crore in the current financial year, the report added.
First Published: Jul 2, 2019 10:54 AM IST
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