Air India posted losses of ₹7,982.83 crore (just over US$1bn) in 2019-20, ₹8,556.35 crore (US$1.17bn) in 2018-19, and ₹5,348.18 crore (US$670m) in 2017-18. Repoorts are circulating that Air India is set to post a net loss in the ₹9,500-10,000 crore region (US$1.25bn) in the year through March 2021. This is good news – it should help the Indian government to argue that divesting the airline at all costs is the answer as the state cannot keep carrying this burden.
The Indian government has provided guarantee support of ₹964 crore to Air India to raise working capital loans from Indian banks this financial year, while extending the existing government guarantee of ₹6,693 crore for working capital needs and $819 million for refinancing of aircraft bridge loans.
“In order to effectively prepare Air India for divestment, the government (has) prepared a plan to bring operational and financial efficiency in Air India. This plan focuses on the financial and operational efficiencies so that substantial increase in revenue and cost saving could be achieved," The government confirmed to local news outlets over the weekend.
The Tata group and an employees’ consortium remain the only real front runners to take over the airline. The consortium of employees is the front runner, it comprises 219 employees of Air India and is headed by director (commercial) and board member Meenakshi Mallik. It hopes to tie up with a financial investor.