Partial relief for Air India

New Delhi: A group of ministers on civil aviation today decided in principle to pay Air India Rs 530 crore in dues out of around Rs 1,220 crore it owes to the national carrier.
The panel also decided to infuse equity into the ailing carrier but said it would again meet next week to finalise the payment details.
“The GoM will meet again next week to take a final decision on further equity infusion,” civil aviation minister Vayalar Ravi said.
Air India had expected the government to pay Rs 800 crore as part of the dues on account of VVIP and evacuation flights from disturbed areas.
The airline, laden with a cumulative debt of Rs 40,000 crore it incurred over aircraft acquisition and as short-term loans to maintain its operations, expects a fresh equity infusion of Rs 1,200 crore. The airline is in talks with banks to restructure its loans and reduce interest outgo, which is eating into its revenues, leaving it perpetually in the red.
According to Ravi, a consensus has been reached on expediting equity infusion and implementing the revival plan.
19/07/11 The Telegraph

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Categories: Air India Jul 2011