Praful Patel to review working of Air India

New Delhi: Civil Aviation minister Praful Patel will carry out a comprehensive review of Air India on Friday ahead of the Rs. 1200 crore equity infusion that the national carrier is expecting from the government.
The decision to infuse Rs. 1200 of equity was to be taken in November.
Government had infused Rs. 800 crore in the last financial year in Air India, which used to have an equity base of a mere Rs. 145 crore and had placed orders for 111 aircraft —- 43 from Airbus and 68 from Boeing —- worth $11 billion. According to sources the airline would require Rs. 3,000 crore to Rs. 4,000 crore annually to pay off its debt which is primarily on account of aircraft induction.
The second tranche of government funds worth Rs. 1,200 crore, to be released after a nod from the Cabinet Committee on Economic Affairs (CCEA), is likely to be used for settling outstanding dues and not to enhance the airline's equity base. CCEA is likely to take up the proposal next month.
29/10/10 NDTV.com

To Read the News in full at Source, Click the Headline

Categories: NACIL Oct 2010