Short-term loans hurt Air India

Poor or faulty initiatives to monetise Air India's assets led to dip in the company's revenues: CAG

The Comptroller and Auditor General of India (CAG) has poked holes in the government’s claim that state-owned Air India was on a turnaround path.
 
In its audit of the turnaround plan and financial restructuring plan of the airline, the auditor said the airline had failed to achieve many of the objectives in various functional areas mandated under the financial restructuring plan, which has provided equity infusion of Rs 30,231 crore till FY21.
 
These failures hurt the airlines’ revenue generation, leading to more short-term loans being issued. Such lending eroded the benefits of the financial restructuring plan. CAG said