Wobbly Air India’s IPO to take off in 2008

New Delhi: It seems Air India’s mounting losses haven’t deterred the government from contemplating a public issue for the state carrier.
The civil aviation minister Praful Patel said on Tuesday that the government could divest between 10-15% equity in the carrier by the second half of next year.
Patel’s comments come just when the beleagured state carrier has sought a Rs 1,000 crore relief from the government.
If the government does agree to this bailout package, this money would be used for expanding the equity base of AI, which stands at a mere Rs 45 crore as of now.
While acknowledging that the carrier has sought relief, Patel said, “They need more capital infusion because asset acquisition (AI is faced with chronic fleet shortage and has to place large aircraft buy orders soon) needs more equity.”
For 2006-07, Air India posted a net loss of Rs 448 crore against Rs 15 crore profit in the previous fiscal. And even in the current year, AI is expected to report a net loss of about Rs 350 crore.
05/12/07 Daily News & Analysis

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Categories: Air India - International Dec 2007, Air india Budget Dec 2007, Air India Domestic Dec 2007, Air India Regional Dec 2007, NACIL Dec 2007