Air India’s mention in I-Day speech may spell speedy equity infusion

New Delhi: Loss-making Air India may breathe a sigh of relief as government assistance in the form of equity infusion may come to the national carrier soon. The government today said it would take steps to quickly resolve the problems faced by the ailing airline.
“We are giving careful attention to the problems of Air India and will resolve them soon,” Prime Minister Manmohan Singh said in his Independence Day address to the nation.
The carrier had recently sought equity infusion to the tune of Rs 5,000 crore over the next five years, besides a letter of comfort from states to bring down its interest cost on commercial loans. The carrier is in the midst of an acute working capital crisis, where it was reported that it nearly exhausted its Rs 16,000-crore limit. A slew of measures were announced by the carrier since then to overcome the current crisis.
Giving priority to Jammu and Kashmir and the North East, Singh said that civil aviation schemes, which include development of airport infrastructure, being implemented in these states “will be especially monitored”.
Meanwhile, civil aviation minister Praful Patel said that the mention of Air India in the speech reflected the high priority being given by the government to help Air India come out of its financial losses.
16/08/09 Indian Express

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Categories: NACIL Aug 2009