Debt laden Air India will have to rely less on government finances for its turnaround in times to come as it is unlikely to get the government approved bailout of Rs 30,000 crore by 2020-21 as planned, with the Centre planning to prune down this amount to reduce fiscal deficit.
According to top officials in the civil aviation ministry, the government plans to delay equity infusion of Rs 30,000 crore that was slated to be infused in small tranches in the national carrier over the next eight years. Instead, the government now plans to spread it over a longer period of time as part of measures to bring down the economy's financial deficit.
At a time when the debt-laden carrier is facing unexpected revenue losses due to sudden grounding of B-787 or Dreamliner aircraft, which is touted to be a game changer for the airline, lesser equity infusion could derail its attempts to revive and turn around its financials. The airline has debt of .`43,000 crore and continuous losses for more than four years.
11/02/13 Economic Times
