Air India likely to get just Rs800 cr this fiscal

New Delhi: Beleaguered national carrier Air India is unlikely to get more than Rs800 crore in government bailout money in the current fiscal ending 31 March, two officials said.
A group of ministers had decided in November to infuse capital in the airline in tranches of Rs400 crore based on monthly reviews of its cost-cutting measures. The state-owned firm was, therefore, expecting Rs2,000 crore from the government this fiscal.
The government has approved giving Air India Rs800 crore after reviewing its performance for November and December, and a final clearance from the finance ministry is expected by the end of January.
The carrier is not likely to receive any more funds till the Union government presents its budget for 2010-11, said the two officials, both of whom spoke on condition of anonymity.
The money will largely go towards paying off loans taken to purchase aircraft, one of the officials said.
Air India inducted 29 new aircraft in 2009, part of a 2005 aircraft order to Boeing Co. and Airbus SAS for $11 billion (around Rs50,000 crore). In 2010, the carrier plans to add half a dozen aircraft to its fleet.
12/01/10 Tarun Shukla/Live Mint

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Categories: NACIL Jan 2010