Air India may not be able to sustain operations, CMD Lohani tells Centre

Air India Chairman Ashwani Lohani has warned of flight disruptions and possible invocation of government guarantee because of delays in fundraising and refinance of aircraft debt. Air India is facing a cash squeeze due to lack of fund infusion and monthly shortfall of Rs 220 crore in operations.
 
It has led to the airline defaulting on statutory payments and caused delays in payment to vendors and service providers as well.
 
Air India is seeking government approval to raise a Rs 2,000-crore loan and refinance $819-million aircraft debt, which would help tide over the financial crisis. “The overall financial