New Delhi: Air India is likely to find it difficult to bridge the deficit of about Rs 1,800 crore in the next fiscal, executives said, reacting to the government's proposal in the budget to give the cash-strapped airline Rs 2,500 crore instead of theRs 4,277 crore it had sought.
"We were to get Rs 720 crore due from the last fiscal, which has also not been allocated. This is going to create a lot of pressure on us, as we will be left with no option but to raise money through debt and that is costly. We will need this money and will approach the government again," said a senior AI executive, who did not want to be identified.
According to the executives, about Rs 3,400 crore of the Rs 4,277 crore was to be used for servicing interest on loans for aircraft purchase, interest payments of the non-convertible debenture issue and other fiscal, guaranteed loans.
03/02/15 Mihir Mishra/Economic Times
"We were to get Rs 720 crore due from the last fiscal, which has also not been allocated. This is going to create a lot of pressure on us, as we will be left with no option but to raise money through debt and that is costly. We will need this money and will approach the government again," said a senior AI executive, who did not want to be identified.
According to the executives, about Rs 3,400 crore of the Rs 4,277 crore was to be used for servicing interest on loans for aircraft purchase, interest payments of the non-convertible debenture issue and other fiscal, guaranteed loans.
03/02/15 Mihir Mishra/Economic Times
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