The government will also take care of unpaid AI invoices of Rs 16,000 crore

NEW DELHI: Air India’s new holding company, which will take over Air India’s real estate, paints and other non-core assets, will also be grappling with piles of unpaid bills from the bleeding national carrier, in addition bank loans.
These “excess liabilities” transferred to Air India Asset Holding Company Ltd amount to Rs 15,834 crore, or more than a quarter of the airline’s total debt, set at Rs 61,562 crore at the end of the month. August.
So what are these “excess liabilities”? Government sources said that these were largely unpaid bills from oil companies, airport operators and other suppliers which Air India had managed to avoid paying over the years due to the fact that it was a fully-fledged public enterprise. The government also has something to do with it as it often delays payments, including for tickets purchased for its employees through another public sector company, Balmer Lawrie.

“The sale will not only stop the blow the government has to take on a daily basis, but will also help clean up the system and unlock funds,” a government official told TOI.
While the liabilities, including loans and unpaid invoices, will be taken over immediately by the new entity, the new entity will only be able to monetize the assets over the next few years, depending on the market situation. In the meantime, he will have to make deals with the banks and other creditors to rework the terms, which the government says shouldn’t be a problem as the government has guaranteed 94% of the loans used to keep the company going. air afloat, against accumulated losses. of nearly Rs 84,000 crore at the end of March.
In addition, the terms of the deal provide that the government will bear the financial impact of Air India’s operations until the company is transferred to its new owner by the end of December, officials said.