State-run airline Air India is unlikely to receive any immediate relief from the government as the cash-starved company is struggling to run daily operations, sources told CNBC-TV18.
Air India, which has been receiving continues funding from the government since September 2018, is yet to use guarantees worth Rs 5,000 crore out of the Rs 7,500 crore provided by the government, according to the sources.
Oil marketing companies had last week stopped the supply of aviation turbine fuel to Air India at six airports due to non-payment of pending dues, CNBC-TV18 reported on August 23, citing sources aware of the development. The fuel supply has been stopped at the airports of Patna, Kochi, Vishakhapatnam, Pune, Ranchi and Mohali.
Dharmendra Pradhan, minister of petroleum and natural gas, told CNBC-TV18 that the OMCs are independently talking to the airline on the ATF supply issue.
Meanwhile, Air Inda said it has no equity support from the government in order to handle its huge debt liabilities. “Our financial performance however this fiscal is very good and we are moving towards a healthy operating profit. The airline despite its legacy issues is performing well,” Dhananjay Kuma, Air India spokesperson said on Friday.
As per the provisional figures of FY 2018-19, the total debt of Air India Ltd as on March 31, 2019, is Rs 58,351.93 crore.
In the union budget for 2019-20, the government had not given any substantial financial equity support to Air India and had said it will again initiate the process of its disinvestment.
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