Air India seeks a second lifeline of Rs 1,200 cr from bailout package

New Delhi: Beleaguered flag carrier Air India has prepared the ground to seek release of the second installment of the earlier approved Rs 5,000-crore bailout package from the government. The company is set to approach the Centre following its board meeting on Sunday to seek another Rs 1,200-crore infusion. The airline has said without fresh funds, its projected accumulated losses would be around Rs 17,000 crore by 2013, from the present Rs 12,000 crore. The government has already provided Rs 800 crore as equity to the airline in February. It lost about Rs 5,200 crore in the 2009-10 mainly due to weak demand, low yield and under utilisation of resources.
The company’s board, which is meeting in Mumbai over the weekend, has drawn a grim picture of its financial position, thus preparing the case for immediate relief.
Further, since the government has linked further release of funds to the airline’s efforts to cut costs, a set of revenue-generating measures has also been prepared.
24/07/10 Indian Express

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Categories: NACIL Jul 2010