‘Bad times are not here to stay’

Civil Aviation Minister Praful Patel is hoping for a turn around of sector, which is going through “turbulent times”.
The minister said the government will infuse fresh equity to the tune of Rs 1,500 crore in Air India and will also extend a soft loan of Rs 2,000 crore to help the airline sail through turbulent times.
Patel said bad times are not here to stay and added that from one airline monopoly the country has come a long way with addition of aircraft and airlines.
Speaking exclusively to Hindustan Times, the minister, dwelled on several issues ranging from the most recent “operational tie-up of India’s leading private sector airlines, Jet Airways and Kingfisher Airlines to how the industry would come out of the current crisis.
Whether the Jet-Kingfisher “operational tie-up” is a cause for concern for state-owned carrier Air India, Patel said, “Air India is a formidable airline. It has been competing and will continue to compete with other players in the aviation space in the country. These are not new players that has just come into being. Any kind of competition is healthy.”
Patel admitted that the state run carrier is not in the pink of financial health.
“The government would infuse fresh equity in the airline if needed which could be to the tune of Rs 1,500 crore and it is not fair to expect an airline with an equity base of Rs 145 crore to go in for an acquisition worth Rs 44,000 crore,” Patel said.
Patel added that the government would talk to financial institutions including private fund houses for fresh equity for the airline.
15/10/08 Samiran Saha/Hindustan Times

To Read the News in full at Source, Click the Headline

Categories: Indian Aviation- In General Oct 2008