New Delhi: Air India has revised the projections and targets for its turnaround plan, to be presented to the Group of Ministers (GoM) monitoring its ailing state.
The next GoM meeting is expected to decide on moving the Cabinet Committee on Economic Affairs soon, for additional equity infusion in the government-owned airline.
The carrier, with a fleet of 133 planes, proposes now to induct not 245, but 240 aircraft in the period till 2014-15. The induction will be a mix of long-haul, short-haul and smaller planes.
“Air India has also reduced the load factor projections for the period to 71 per cent from 75 per cent earlier. This figure seems more realistic, as the airline is clocking a load factor in the mid-60s,” said a government official, who did not want to be identified. He said the revision was made considering the current high oil price.
The airline is demanding an equity infusion of Rs 43,000 crore till 2021. For the current financial year, it wants infusion of Rs 8,373 crore, an upfront equity infusion of Rs 6,600 crore and support of Rs 1,772 crore in the form of a guarantee on short-term loans for this financial year. Of this, the government had already announced Rs 1,200 crore in the year’s Budget. It also owes the airline another Rs 1,000 crore on operation of VIP flights.
The fund requirements of the cash-strapped airline are huge. It has to repay Rs 20,415 crore worth of loans before the end of this financial year.
In a communication to Prime Minister’s Office and the finance ministry a few days earlier, the AI management pegged the overdue amount at Rs 4,489 crore.
18/07/11 Mihir Mishra/Business Standard
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