New Delhi: Rumours of Air India’s shutdown are baseless, said the debt-laden airline chief Ashwani Lohani on Saturday. Notably, the airline has a debt burden of around Rs 60,000 crore and reports claimed that the Central government is still working on the modalities for the disinvestment. Earlier last month, the airline in a statement had said that if nothing goes well, then the last operations will be until June 2020.
“Rumours regarding Air India shutting down or closing operations are all baseless. Air India would continue to fly and also expand and there should be no cause for concern whatsoever to travellers, corporates or agents. Air India the national carrier is still the biggest airline of India,” the Air India Chairman and Managing Director (CMD) said in a tweet.
His remarks come weeks after he told the Civil Aviation Ministry that the carrier’s financial situation was ‘grossly untenable’ for sustaining operations.
In a letter to the ministry last month, Lohani had said, “It also needs appreciation that the overall financial situation is grossly untenable and the airline may not be able to sustain physical operations in the absence of immediate government intervention and support that we have been repeatedly requesting for in the recent past.”