Air India seeks additional equity from govt to pay vendors: source

Air India has sought INR21.21b (US$309m) of additional equity from the govt for the fiscal year 2018-19 to make pending payments to its vendors, a source at the airline said Monday. Air India owes about INR18b to its vendors, including lessors and banks that have demanded payment from the beleaguered airline, after the govt's unsuccessful efforts to find a buyer for its 76% stake. The airline expects to receive the additional equity within the next 7 to 10 days after which it will be able to clear all dues, the source said, adding that this is above the INR6.5b it has already received for the year. The govt will continue to support the loss-making airline's financial requirements while it works on alternatives, junior civil aviation minister Jayant Sinha had said, without giving a specific timeline for a new plan. <br/>