The only path left is to invite NatGeo post haste to film an episode because thats one way of earning revenue over a long period.
So it’s not just the airline that’s sinking, it’s a few others as well. Moody’s Investors Service Inc has said Air India’s recurring default is `credit negative’ for its lenders, which include India’s biggest state-owned banks, State Bank of India and Punjab National Bank.
Latest figures show Air India’s debt at Rs 42,750 crore ($9.5 bn) outstanding and accumulated losses of Rs 22,000 crore ($4.8 bn) as of March 31 this year. Annual revenues are only around Rs 13,000 crore ($2.8 bn) Reports say banks such as Bank of Baroda, Bank of India, IDBI Bank Ltd, Central Bank of India and Oriental Bank of Commerce are the airline’s key lenders and represent close to 70% of its loan exposure.
Salaries are behind by several months for many employees. Air India has opened a battle front with Star Alliance for rejecting its membership `despite meeting some 80 conditions’. How that will help we don’t understand since the product matters, not emotion.
Reports suggests that the CEO of the airline was never meant to be given this job while the federal auditor, the Comptroller & Auditor General says hundreds and thousands of crores were lost in bad deals. And amazingly, there are talks of capital infusion without any accompanying discussion on the future of an airline that isn’t. Its not often that ratings agencies get things right. This is one case where its tough not to.