The Survey has come down heavily on the government’s attempts to prop up Air India.
“Defying history, there is still the commitment to make the perennially unprofitable public sector airline world class,” the Survey says.
The Manmohan Singh government had committed ₹40,000 crore to Air India, which helped the airline report an operating profit of ₹105 crore for 2015-16 against a loss of ₹2,636 crore in the previous year.
Air India is now looking at a consortium of 19 public sector banks to convert its loans worth ₹10,000 crore into equity. If the proposal goes through, as much of 40 per cent of Air India’s equity will be held by the consortium. The revamp comes as the Reserve Bank of India has come out with S4A guidelines which look at ways and means of providing sustainable restructuring for financially stressed companies.
31/01/17 The Hindu Business Line
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“Defying history, there is still the commitment to make the perennially unprofitable public sector airline world class,” the Survey says.
The Manmohan Singh government had committed ₹40,000 crore to Air India, which helped the airline report an operating profit of ₹105 crore for 2015-16 against a loss of ₹2,636 crore in the previous year.
Air India is now looking at a consortium of 19 public sector banks to convert its loans worth ₹10,000 crore into equity. If the proposal goes through, as much of 40 per cent of Air India’s equity will be held by the consortium. The revamp comes as the Reserve Bank of India has come out with S4A guidelines which look at ways and means of providing sustainable restructuring for financially stressed companies.
31/01/17 The Hindu Business Line
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