Bail out debt-ridden AI, HC tells Centre

Mumbai: The Bombay high court on Tuesday told the Union government to save the national carrier Air India from financial doldrums and take a decision on releasing Rs 400 crore in six weeks.
The court's directions came even as the Union of India accused AI of making deals with its employees behind its back.
"The financial crisis of Air India seems to be an unending problem," said a division bench of Justice P B Majmudar and Justice Mridula Bhatkar, adding, "It is for the government of India to save AI from going into liquidation and we hope that the government will take appropriate steps."
The court admonished the Union government for allowing things to slide to such an extent. "It was the duty of the Union government to monitor the affairs of the airline minutely. It is surprising that the government did nothing when AI was incurring huge liability and debt from time to time."
The court was hearing a petition filed by the retired cabin crew of AI, who are claiming over Rs 73 crore as arrears.
The government's lawyer said that a decision had been taken to give the airline a grant of Rs 2,000 crore, out of which Rs 800 crore has already been paid.
22/12/10 Shibu Thomas/Times of India

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

Categories: Air India Dec 2010