Air India likely to get Rs 2,000 cr next fiscal

New Delhi: Union Budget 2011-12 may hold good news for cash-strapped national carrier Air India, provisioning Rs 2,000 crore for its bailout from the financial mess, said top sources. Previously, it had received Rs 2,000 crore equity infusion from the government in two tranches in 2009-10 and 2010-2011.
“In the budgetary allocation, Air India is likely to receive Rs 2,000 crore in the next fiscal,” said a top official. The support will help the carrier to tide over it current cash crisis which has forced it to repeatedly delay payment of employees’ salaries too. Recently, a section of the pilots’ union had threatened to go on strike protesting non-payment of salaries and wage disparity with those who fly bigger planes on international routes.
Air India’s daily cash collections or revenues from all sources including passenger and cargo bookings is pegged at Rs 22 crore, while its daily expenditure is Rs 30 crore, leaving a yawning gap, said a civil aviation ministry official. In addition, the carrier shells out Rs 17.5 crore daily to meet its fuel expenses alone as it had been put on ‘cash and carry’ by oil marketing firms.
12/02/11 Smitha Aggarwal/Indian Express

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Categories: Air India Feb 2011