Prepare restructuring plan in 30 days: Patel to Air India

New Delhi: The borrowings of Air India, which is facing a severe financial crunch, have more than doubled in less than two years and the airline has been now asked to prepare a restructuring plan in the next 30 days.
"The airline has been facing a financial crunch for the past few years. The borrowings of Air India have risen steeply from Rs 6,550 crore in November 2007 to Rs 15,241 crore in June this year," Civil Aviation Minister Praful Patel told Lok Sabha today.
In reply to a question, he said the borrowings have gone up largely due to servicing of debt on account of purchase of new aircraft and its operating losses which have compounded due to the present economic recession and the high oil prices last year.
He said the National Aviation Company of India Limited (NACIL) has been advised to formulate "a concrete proposal for equity induction and provision of loans".
Patel also made it clear that there was no plan to retrench any employee of Air India.
02/07/09 PTI/Economic Times

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Categories: NACIL Jul 2009