Civil aviation minister forecasts bleak 2020 results for Air India

Air India is forecast to widen its full-year net loss to Rs97.8 billion ($1.35 billion), even as the Indian government reiterated its support for the long-drawn divestment of the national carrier. Civil aviation minister Hardeep Singh Puri disclosed the figure in a parliamentary response on 25 March, where he said that the coronavirus outbreak has “worsened the financial position” of Indian carriers, including that of state-owned Air India. The net loss forecast for the year ended 31 March 2021 compares with the carrier’s net loss of Rs80b for the previous financial year. He notes that hte airline has taken a number of measures to reduce costs, including unpaid leave and closure of some foreign stations. The Indian government provided no equity infusion in fiscal 2020/2021, instead providing a guarantee support of Rs9.6b to the ailing carrier, which was used to raise new working capital loans. The government also extended aircraft bridge loans for the carrier.<br/>