The oldest and the largest, government-owned airline in India which is a part of the Indian Air India Limited (AIL), has defaulted its interest payments to the banks for the first time, according to the sources.
The company has Rs 400 crore dues pending over the last two months and these payments are towards servicing a huge debt of Rs 21000 crore which was taken from about 20 banks. The concerns have been raised by the PSU banks regarding the default in payment by the national carrier and if this continues for three consecutive months, the banks may put the company into a non-performing asset (NPA) category on their books.
A PSU bank source said, “Air India has asked for an additional loan but bank refused to give away the extended amount as the company has reached to the upper limit of the loan.
Air India has written to the Indian government to pay the pending dues of the VIP carrier services which is 1035 crore and can be used as the interest payment to the bank and company has assured the various banks about the payment of their dues as soon as possible.
The state-owned flag carrier airline operates a fleet of Airbus and Boeing aircraft serving Asia, Australia, Europe and North America. Its corporate office is located at the Air India Building at Nariman Point in South Mumbai. It is the 16th largest airline in Asia. Air India has two major domestic hubs at Indira Gandhi International Airport and Chhatrapati Shivaji International Airport.