The government has not yet succeeded in selling the stake of Air India. The Tata Group may bid for its stake in association with Singapore Airlines.
The loss of Government Airlines Air India, which was in trouble, has increased significantly. In the financial year 2020-21, the loss of Air India reached about 10 thousand crore rupees. Losses increased further after its merger with Indian Airlines. The airline companies around the world have incurred losses due to the Corona transition, but AirIndia’s losses have increased substantially. The government does not seem to be successful in trying to sell it.
Air India losses are increasing rapidly
According to reliable sources aware of the losses of Air India, the airlines have incurred a cash loss of Rs 8000 crore. The rest of the losses are due to depreciation costs. This loss will reduce the valuation of the airlines. By selling this, the government will get less money. Air India also incurred a loss of Rs 8000 crore in the financial year 2019-20. The airline had a loss of less than 8500 crore in the financial year 2018-19. Air India had a loss of Rs 5300 crore in the financial year 2017-18.
Fund of five thousand crores raised from NSSF
Airlines have been taking loans to meet their losses for the last few years. In order to meet its operating costs, the airlines have decided to take a loan of Rs 5000 crore from the National Small Savings Fund ie NSSF.
Air India will raise 10 thousand crore rupees from three banks. Four thousand crore rupees have been received from NSSF and remaining 1 thousand crore rupees will also be received soon. The government’s efforts to sell Air India’s stake are continuing. There are reports that the Tata group may bid for its stake in association with Singapore Airlines.
Nidhi Malviya is fun loving girl. She writes at NoobFeeds about various topics related to Finance, Technology, Business etc.