Air India to borrow Rs 900 crore

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Mihir Mishra: New Delhi, Nov 20 2012, 01:13 IST

funded by internal accruals and Rs 2,000 crore cash credit account is enough for the airline. “The airline is doing operationally well and we expect the airline to get operational profit by the end of this fiscal,” the official said.

Of the Rs 7,400 crore bond issue, the Employees’ Provident Fund Organisation is likely to pick up Rs 4,400 crore and the Life Insurance Corporation is likely to take Rs 3,000 crore worth of bonds. “These two organisations will earn an interest amount of Rs 350 crore annually on the amount invested on the bonds,” said the ministry official.

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Reader's Comments (3)| Post a Comment

throw this crap out. and save our money

reaz | 20-Nov-2012Reply | Forward

its high time to privatise this white elephant.why should the Gov spend our money on AI - IA.Why should the Gov save these Lazy people who does not care about their passengers.

AIR INDIA TIGHTENING ITS BELT

HARJAP SINGH AUJLA | 20-Nov-2012Reply | Forward

It appears that at long last Air India is trying to do some belt tightening. The prolonged strike by the pilots has grievously damaged the financial health of the airline. India is a different market than America. America's model of two hubs may not be the best for India. India has clusters from where lots of diaspora has taken place. Direct flights from these areas can be even better than hub and spoke flights.

Our Own Enemies in Finishing off our Own Business

Rajesh | 20-Nov-2012Reply | Forward

Our Govt. has double standards.Govt. bails out Air India many number of times.Govt. keeps pumping funds for an Airlines which is in ever Red.Why can`t Govt. bail out King Fisher Airlines at least once or Twice to make this Ailines No ! Airlines in the World.King Fisher Work Culture is definetly the best compared to Air india which is the worst.Govt. must help King Fisher duing th their troubled times. Dr.Vijay Mallya should be supported at all cost as he is an Desi Internationally recoognised Business perosn