AI eyes Rs 15k cr bailout package

New Delhi: Getting the critically ill Maharaja of Air India out of the ICU could mean some pain for both the aam admi and the ruling class.
On Tuesday, top aviation ministry officials and AI chief Arvind Jadhav briefed minister Praful Patel on the Maharaja's maladies and possible remedies.
In the meeting Jadhav told Patel that AI urgently needs equity and soft loan infusion from the government to be able to keep flying. To tide over its problems, the airline is learnt to be eyeing Rs 10,000-15,000 crore as bailout package. But since the finance minister has already told them to get real and seek a `realistic' figure. Any amount higher than Rs 4,000-5,000 crore is being billed as unrealistic.
AI also requested for a relook at the massive bilateral agreements India has signed with foreign countries in past few years that has allowed their airlines to virtually flood Indian cities big and small with flights at rock bottom fares. Incidentally, other Indian carriers like Jet and Kingfisher have also raised this demand very often. Reversing this opening of skies, could mean fares sky rocketing again on limited capacity.
The cash-strapped national carrier has also asked the government to make it compulsory for government employees travelling on official trips to use only the AI which would inturn get some revenue. At present, officials can take any airline they want with AI featuring pretty low on preference list.
On the problems side, Jadhav listed issues of huge losses. Last fiscal, AI lost Rs 5,000 crore and is now losing Rs 15 crore daily. HR issues like overstaffing in some places and severe shortage in others is also learnt to have featured prominently in the meeting.
24/06/09 Saurabh Sinha/Times of India

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Categories: NACIL Jun 2009