For Air India, debt restructuring is need of the hour: MD

Moneycontrol Bureau

Apart from debt of Rs 51,000 crore as on March 31, Air India’s cost of servicing the debt itself is Rs 4,000 crore every year, the company's Chairman and Managing Director Ashwani Lohani told Livemint in an interview last week.

At this time, he is of the opinion that debt restructuring is what the national carrier needs the most.

Adding to company woes, July numbers indicate that the airline's passengers were the worst hit by delays extending over two hours in the month due to technical reasons. According to an ET report on September 4, the biggest of performance hurdle is the older aircraft that needs urgent replacement.

Lohani, however, has other solutions lined up. He believes improving staff morale, services, efficiency and launching more commercial packages will benefit the airline’s cashbooks going ahead. "We are bringing tremendous focus on human resources (HR)," he told the media house.Read more at: Air India wants to do a debt restructuring: Ashwani Lohani