Air India to get Rs 800-cr first bailout tranche by Jan

Belgaum: Cash-strapped Air India will get its initial Rs 800-crore bailout money as equity in the next two months, the Civil Aviation Minister, Mr Praful Patel, said on Saturday.
The Group of Ministers has approved a first infusion as part of the rescue-AI effort. Any additional booster dose would depend on the public sector carrier meeting the cost-cutting conditions, Mr Patel said after the inauguration of Quest Global’s aerospace SEZ in Belgaum in north Karnataka.
To qualify for the second tranche, Air India has to save Rs 2,000 crore by cutting cost and generating revenues by March. “We are looking at an equity infusion of Rs 800 crore as initial tranche,” Mr Patel said. “We will be monitoring the monthly progress made by Air India and then decide on the next tranche of equity support.”
AI had asked for a fresh equity infusion of Rs 5,000 crore. “The Government is doing its best to help Air India make a turnaround.” The question of the Government divesting its stake did not arise now.
15/11/09 Business Line

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Categories: NACIL Nov 2009