GoM nod to additional equity infusion of Rs 1,200 crore for Air India

New Delhi: More funds for cash-strapped Air India is on the anvil with the Group of Ministers (GoM) on Monday approving in-principle additional equity infusion of 1,200 crore and payment of 532 crore for operating VVIP and rescue flights.
Against the backdrop of the state-owned airline's massive cumulative loss and debt burden of about 67,000 crore, the GoM headed by Finance Minister Pranab Mukherjee had a meeting and discussed finance issues confronting the ailing carrier.
After the meeting, Air India CMD Arvind Jadhav told reporters that the GoM has in-principle granted approval for the 1,200 crore equity infusion.
The GoM has also granted approval for payment of 532 crore for operating VVIP and rescue flights for the government and formation of strategic business units for groundhandling, he said.
Civil Aviation Minister Vayalar Ravi told reporters the GoM will meet again next week to discuss other finance issues.
19/07/11 PTI/Economic Times

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Categories: Air India Jul 2011