The airlines also said that banks did not lend them money as the airlines failed to pay the interest payments.
"Banks want government guarantee before further lending to Air India," said the carrier.
The airline vendors are not paid for more than three months because of goods supply to AI has stopped until the vendors are paid back in cash, said Airline sources. Sources further added that this would affect the airlines heavily and bring the service to a halt.
"No interest has been paid on loans since April and total over dues are put at Rs 4500 crore," said Air India.
A interest of Rs 2500 crore is being paid by the airlines every year for running their daily operations.
Rs 22, 000 crore has also been taken by AI to buy a new craft for which the interest totals a 1000 crore annually.
The government has also been asked to pay an amount of Rs 1,173 crore that is due for the VVIP operations so that Air India could pay salaries to the staff.