CURRENT AFFAIRS

Detailed explanation-1: -The Centre has allocated Rs 9,259 crore to AIAHL, a government-owned special purpose vehicle set up to handle Air India’s debt and non-core assets, for the next financial year starting from April 1, according to a budget document.

Detailed explanation-2: -Increasing interest rates and a lack of liquidity in the system will increase borrowing costs, Economic Times reported citing a bank official. The total losses incurred by Air India as of the end of March 2021 were Rs 83,916 crore. It lost an additional Rs 9,556.5 billion in FY22.

Detailed explanation-3: -The bid included a payment of ₹2,700 crore while retaining a debt of ₹15,300 crore. The divestment of the national carrier was concluded on 27 January with the Centre completing the handover of Air India, and its subsidiaries, Air India Express and AISATS (a 50% stake), to the Tata group.

Detailed explanation-4: -Much of the debt is related to the merger between Air India and the other state-owned carrier, Indian Airlines, which was cleared by the Cabinet on March 1, 2007 to form the National Aviation Company of India Limited (NACIL).

Detailed explanation-5: -The Group has already announced plans to merge low-cost carriers under Air India Express by the end of 2023 and full-service carriers under Air India by 2024. Till the time order for these aircraft are placed, Air India has inducted aircraft on lease to expand globally.