New Delhi: State-owned Air India risks losing a $5.8 billion government bailout, civil aviation minister Ajit Singh said on Thursday, as industrial action by pilots disrupted flights for a fourth day.
The national airline, which has been surviving on taxpayers' money, is scheduled to get $1.3 billion in fresh equity from the government in the current fiscal year but this is linked to its performance.
"Pilots need to understand that if Air India does not meet the performance yardsticks set in the plan, that money will not reach them. It's not a one-time deal," Singh told Reuters in an interview.
India's civil aviation industry is suffering under high fuel costs, low fares and a combined debt of $20 billion. Five of the country's six main carriers are losing money.
10/05/12 Times of India
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