Panel for Rs 50,000-cr soft loan to fund Air India's fleet buy

New Delhi: The Parliamentary Standing Committee on Transport, Tourism and Culture has recommended that the entire aircraft purchase of National Aviation Company of India (NACIL) — the entity created by the merger of Air India and Indian — be funded by the Government as a one-time soft loan. The airline has ordered 111 aircraft from both Boeing and Airbus at an estimated cost of Rs 50,000 crore.
“A cue in this regard has been taken from the similar bailout packages provided in other countries” to retrieve the situation, the Committee said in its latest report presented on Thursday.
The report also said the airline should review its aircraft acquisition programme in view of its financial conditions, changing commercial dynamics and demand and supply situation in the aviation market.
21/01/10 Business Line

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Categories: NACIL Jan 2010