Air India  which is already in the middle of a Rs. 5,000 crore bailout by the government, is now demanding Rs. 6,600 crore as an upfront payment.

The airline has already got Rs. 2,000 crore as part of the ongoing rescue plan and is supposed to get the remaining Rs. 3,000 crore over the next two years. Of this, it’s supposed to get Rs. 1,200 crore in the current fiscal year.

Not only has the carrier unexpectedly asked for more cash, it now wants an additional Rs. 5,736 crore infusion of equity over the next 10 years to to fund cash deficits. The demand for additional funding was made by the senior executives of the ailing airline who met finance ministry officials.

The demand for more money comes as Air India has been unable to meet many of the key conditions that the government had attached to the current rescue plan. The demand also comes amid the economy showing all signs of slowing this year and with the government fighting to keep a lid on spending amid a surge in input costs.

Mint