Govt to infuse Rs.1,200 cr into AI next week

The government will finally infuse Rs.1,200 crore equity into cash-strapped Air India Ltd next week even though the national carrier had not achieved some key targets set by the government, according to two civil aviation ministry officials who did not want to be identified.
The infusion, the next instalment of a Rs.5,000 crore government bailout, has been on the cards for several months, although the Cabinet Committee of Economic Affairs said in October that it wouldn’t happen because the airline had not met its targets.
Mint reported an unnamed government official as saying, in a story published 28 October, that the committee had said it couldn’t approve the release of funds until a group of ministers(GoM) that had set the original targets signed off on the airline’s failure to meet some of them.
Mint couldn’t immediately ascertain whether the GoM has approved the exception.
One of the targets that has not been met by Air India is rationalisation of wages.
Air India spent at least Rs.3,000 crore on paying salaries of 33,000 employees in 2009-10.
08/12/10 P.R. Sanjai/Live Mint

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Categories: Air India Dec 2010