New Delhi: The newly-appointed audit committee, headed by Mr Harsh Neotia, Chairman, Ambuja Realty, has asked Air India to look at ways of bringing down its annual interest burden and repayment costs on the acquisition of new aircraft. In 2006, the airline ordered 68 Boeing aircraft worth $7.5 billion while its 43 Airbus aircraft order is valued at about $2 billion.
“The committee has asked the management to tighten up in such a manner that both the interest burden and repayment can be brought down. Annually, the airline is paying about Rs 2,600 crore as interest and repayments. This figure will climb unless something is done,” official sources told Business Line. The audit committee includes senior officials from the Ministry of Civil Aviation.
The Government has provided a sovereign guarantee for $7 billion of the combined value of $10 billion for aircraft acquisition.
09/05/10 Ashwini Phadnis/Business Line
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