Govt rejects Air India’s proposal to convert AAI's dues into equity
The government has rejected national carrier Air India's proposal to convert a portion of its outstanding dues to Airports Authority of India (AAI) into equity.
MoS for Civil Aviation Jayant Sinha on Tuesday informed the Parliament that the ‘proposal was considered but not accepted by AAI’.
"Air India has proposed to convert Rs 1,000 crore of outstanding dues payable to AAI into equity thereby offering AAI a stake in Air India as well as a position on its board," he said.
He also disclosed that as on March 31, 2016, Air India owed a total outstanding dues of Rs 1,883.73 crore to AAI.
Air India, which is staying afloat on taxpayers' money, owes around Rs 2,300 crore to AAI. These dues are towards landing and parking charges as well as route navigation charges.
On earlier occasions, too, the airports operator had rejected similar proposals from the government-owned airline.
Air India has been making various efforts to revive its fortunes amid stiff competition. The carrier is surviving on a Rs 30,000 crore bailout package extended by the central government.
With Agency Inputs