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  Business   Companies  11 Jan 2017  Air India will come out of debt mess: Lohani

Air India will come out of debt mess: Lohani

THE ASIAN AGE
Published : Jan 11, 2017, 6:18 pm IST
Updated : Jan 11, 2017, 6:42 pm IST

Sate-run carrier grapples with Rs 46,000 crore debt even as govt extended Rs 30,000 crore funds to it.

 Air India CMD Ashwani Lohani. (Photo: Twitter)
  Air India CMD Ashwani Lohani. (Photo: Twitter)

Mumbai: Air India, the state-run carrier that has been kept afloat through a bail-out package of Rs 30,000 crore from government, is hopeful that it will come out of the financial mess as a “good service”.

Airline’s chief managing director Ashwan Lohani believes the issues faced by it are not insurmountable. “Rome was not built in a day,” Lohani told The Financial Express while referring to the problems faced by the airline.

The airline which had a total debt of Rs 51,000 crore managed to reduce it by Rs 5,000 crore last fiscal as part of its turnaround plan for the carrier. The total debt the carrier now has to clear stands at Rs 46,000 crore.

The airline as part of its turnaround strategy has offered a Republic Day scheme under which its passengers can fly on a fare in the range of Rs 1,080 to Rs 4,730.

When asked why the airline was constantly targeting Indian Railways to lure its passengers, Lohani said the carrier wants to offer a better service.

“We want to lure Rajdhani Express passengers away. We believe that we can offer a better deal that will not only cost a little less, but also save a lot of time,” The Financial Express quoted Lohani as saying.

Tags: air india, ashwani lohani, bailout package
Location: India, Maharashtra, Mumbai (Bombay)