AI to spend most on aircraft acquisition in FY'10

New Delhi: With Air India in the process of inducting aircraft, the national carrier would spend most of its over Rs 8,000 crore planned budget on funding its acquisition programme in the next financial year.
The plan expenditure for National Aviation Company of India Ltd, which owns Air India, was fixed at Rs 8,165.64 crore, up against last year's allocation of Rs 5,786.48 crore and a revised expenditure of Rs 4,136.89 crore. The airline is funding the acquisition programme through internal accruals.
Air India has been seeking from the government a hike in its equity and a soft loan to meet the growing expenditure on its expansion plans and the ongoing acquisition of 111 planes.
The Civil Aviation Ministry's outlay for 2009-10 is Rs 12,164.76 crore, of which the budgetary support is Rs 190 crore.
A provision of Rs 4 crore was made for meeting expenses on salaries and administrative infrastructure for the Airport Economic Regulatory Authority, whose chairman and members are yet to be appointed.
16/02/09 PTI/Economic Times

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Categories: Airports Feb 2009, Indian Aviation- In General Feb 2009, NACIL Feb 2009