RBI may clear AI debt-recast plan

Mumbai: Cash strapped Air India might breathe a little easy as the central bank is expected to clear a debt restructuring plan for the airliner by November, minister for civil aviation , Praful Patel , said on Friday. Air India has a debt burden of Rs 19,000 crore.
Mr Patel said the airliner will get the next round of equity infusion, around Rs 1,200 crore soon, and no issues have been raised by the cabinet committee for economic affairs (CCEA), which need sorting out as a pre-condition to that disbursement.
“The government is committed to providing equity support for Air India and CCEA will disburse the money in November,” he said. Mr Patel was in Mumbai reviewing policy and restructuring initiatives undertaken by the Air India management for a turnaround plan and also for certain “belt tightening” which is currently underway, though he refused to give details of these measures.
Air India, with losses of over Rs 5,000 crore for the last financial year, is on a recovery path. Mr Patel said the airline has improved performance with an increase in the number of passengers this year. It was helped by an overall improvement in the economic environment.
Giving a preview of the half-yearly performance for the airline, Mr Patel said Air India has improved its yields compared with last year, with an increase of 13%. Passengers carried by the airline has also gone up 16% from 30,000 last year to 35,000 passengers per day.
30/10/10 Economic Times

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Categories: NACIL Oct 2010