Air India to get 532 crore for VVIP flights

New Delhi: Financially troubled Air India got a small breather on Monday when a group of ministers (GoM) set up for the airline cleared payment of Rs 532 crore to the Maharaja on account of the VVIP flights operated by it.
The airline, whose combined debt, losses and dues are almost Rs 87,000 crore at present and needs Rs 6,000 crore immediately to survive, also got an in-principal approval from the GoM for equity infusion of Rs 1,200 crore this fiscal.
Besides VVIP flights, AI was given the Rs 532 crore relief for evacuating Indians from Egypt . Finance minister Pranab Mukherjee-led GoM discussed the airline's poor financials.
Being aware that AI's requirement is way more than what the government has currently agreed for, aviation minister Vayalar Ravi said the GoM would meet again next week to discuss other financial issues. AI is set to default on its bank loan repayments.
The airline's management came with a presentation on a turnaround plan but the GoM felt the committee of secretaries of many crucial ministries should do the presentation.
19/07/11 Economic Times

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Categories: Air India Jul 2011