A month after requesting the government to restore its equity infusion, Air India has now raised a fresh requirement of Rs 2,100 crore from the Centre to take care of its immediate operational expenses. This money, however, will not be enough as this fund will only meet the airline's immediate needs. In future, the state-run airline will need larger capital to lease planes to compete with domestic and international carriers.
Last year in March, Air India's board of directors had approved a proposal to induct seven Boeing 787-9 aircraft in its fleet with the aim to improve connectivity to Canada, the US and Australia. The airline was planning to float tenders for procuring these aircraft on lease in June. However, the proposal was put on hold as the government decided to go for privatisation.
According to a report in Mint, the Centre is expected to infuse equity into Air India to fund its operational and working capital requirements. "The government is committed to provide Air India with necessary financial resources for its successful turnaround," Mint quoted an official as saying.
11/07/18 Business Today
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Last year in March, Air India's board of directors had approved a proposal to induct seven Boeing 787-9 aircraft in its fleet with the aim to improve connectivity to Canada, the US and Australia. The airline was planning to float tenders for procuring these aircraft on lease in June. However, the proposal was put on hold as the government decided to go for privatisation.
According to a report in Mint, the Centre is expected to infuse equity into Air India to fund its operational and working capital requirements. "The government is committed to provide Air India with necessary financial resources for its successful turnaround," Mint quoted an official as saying.
11/07/18 Business Today
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