Air India banks on improved report card

New Delhi: The government will review the performance of Air India in the past one-and-a-half years before signing off on the next installment of a rescue package that involves pumping a total of `2,000 crore into the airline.
The airline has higher revenue, lower losses, cost cuts, higher occupancy and a new management structure to show in its favour when a group of ministers (GoM) meets to decide if the time is right to offer a second equity infusion of `1,200 crore, two government officials said.
The GoM will meet on 14 September to review the airline’s performance and likely consider further equity infusion, Mint reported on 3 September. The cabinet committee on economic affairs is also likely to meet soon to discuss the infusion.
In November, a GoM led by finance minister Pranab Mukherjee laid down performance-related conditions for infusing at least `2,000 crore into the airline, run by the National Aviation Co. of India Ltd (Nacil). The first tranche of `800 crore was paid last fiscal.
Many of these conditions have been met by the airline, the officials said, requesting anonymity.
06/09/10 Tarun Shukla/Live Mint

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Categories: NACIL Sep 2010