The Indian government is working on a rescue package for the country’s embattled airlines as both Air India and Jet Airways are struggling with piling debts and losses, a secretary in the Ministry of Civil Aviation, Rajiv Nayan Choubey told Reuters.
Choubey did not give any details regarding the planned rescue package but said it would come on top of the INR9.8 billion rupee (USD136.5 million) government capital infusion into the struggling flag carrier.
The central government will additionally extend a INR21 billion rupee (USD292.5 million) guarantee to Air India, Choubey added. On September 6, the flag carrier already invited offers from domestic and foreign banks for INR5 billion rupee (USD69.6 million) in credit guaranteed by the state.
For its part, Jet Airways said it had entered into talks with its employees regarding unpaid August salaries. The carrier earlier admitted it had delayed payments to 15% of its workforce, well over 2,000 persons, as it struggles to preserve cash.