New Delhi: Ailing Air India, which would get equity infusion of Rs 30,000 crore till 2021 as part of its turnaround plan, expects to wipe off its losses and become cash positive in the next five-six years, official sources said today.
The airline, which would get an upfront equity infusion of Rs 6,750 crore this financial year, estimates that it would slash its current yearly operating loss of Rs 1,700 crore to just Rs 23 crore in five years and become cash positive by 2018, top Air India officials said.
The estimations are based on the assumption that the airline's turnaround plan (TAP) and the financial restructuring plan (FRP), now approved by the government, would be implemented as planned.
Apart from deciding to infuse additional equity worth Rs 30,231 crore between 2012 and 2021, the government 10 days ago also approved hiving off its engineering and ground handling services into two wholly-owned subsidiaries that would reduce its employee-aircraft ratio to 100 from 224 now.
22/04/12 PTI/Economic Times
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