The pandemic has dealt a body blow to the aviation sector and the already struggling Air India's finances are only set to worsen. The Narendra Modi government is expecting the losses to widen by 80 percent and revenue to shrink by 50 percent this year.
The debt of Air India as of March 31, 2019, was Rs 58, 255 crore. Later in 2019, Rs 29,464 crore of this debt was transferred from Air India to a government-owned special purpose vehicle called Air India Assets Holding Company Limited (AIAHL).
Sources privy to the developments told CNBC-TV18 that the Centre may look at making some changes to the rules that have been laid down for the sale of the airline.
Air India has incurred a net loss of about Rs 2,570 crore in the first quarter of 2020-21 as compared to a net loss of Rs 785 crore sustained in the corresponding period a year ago.