Most airlines in India hope to post record profits in 2019-20 as a result of the suspension of Jet Airways's operations. However, Air India is left with no option but to see the opportunity pass by. At least 19 of the national carrier's planes are grounded due to lack of funds to repair its engines. Its top management pegs the requirement to be over Rs 1,500 crore of immediate fund infusion to get them back to flying. As the general elections are currently underway, the situation is unlikely to improve anytime soon. Any hope of fund infusion may happen only after the formation of a new government.
The airline management has already communicated to the finance ministry about its inability to service over Rs 9,000 crore of debt due this financial year. If the funding does not come in, then the airline will have to prune its operations, thereby further straining the capacity requirement in the market which is already reeling under the shortage of about 180 aircraft. The shortage in capacity has already led to a flare-up in fares, inconveniencing the fliers in the ongoing peak season.
Critics are meanwhile raising concerns over the viability of the continuous funding of a long-bleeding airline after a failed attempt by the government to divest 76% stake in the airline last year. The next government at the Centre will definitely have to take a serious look at it.