Six reasons why Air India is going downhill

Benefits from fin restructuring plan have been eroded by high volume of short-term loans: CAG

The Comptroller and Auditor General of India ( CAG) pointed out numerous holes in the government version that state-owned Air India is on a path to turnaround its fortunes. In its audit of the Turnaround Plan and Financial Restructuring Plan of the airline, the auditor said that the airline has failed to achieve many of the objectives in various functional areas mandated under the financial restructuring plan which provided equity infusion of Rs 30,231 crore till FY21.

This failure resulted in less revenue generation for the airline leading to requirement of more short-term loans for the airline which eroded