Air India wants Rs 14,000 cr bailout

The Rs 15,000 crore Maharaja has sought a bailout package of Rs 14,000 crore from the government as Air India is likely to post a loss of around Rs 5,000 crore in 2008-09. The bailout amount has bloated by 250 per cent from what Air India demanded last year.
In a revised bailout proposal, the national carrier has asked for an equity infusion of around Rs 5,000 crore and a soft loan of Rs 7,000 crore. In addition, it has also demanded Rs 2,000 crore as grant from the government.
The proposal, finalised by Air India a week ago and submitted to the civil aviation ministry recently, was discussed by the ministry.
Last year, the carrier had asked for a Rs 2,750 crore soft loan and an equity infusion of Rs 1,231 crore. The finance ministry and department of public enterprises had then asked the ministry to draw up a plan to trim down holding firm National Aviation Company of India Limited’s operations and prepare a viable model for the next five years.
05/06/09 Smita Aggarwal/Indian Express

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Categories: NACIL Jun 2009