First tranche of AI equity infusion by Dec: Patel

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Posted: Saturday, Nov 14, 2009 at 1853 hrs IST
Updated: Saturday, Nov 14, 2009 at 1853 hrs IST

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Celebi to invest $100 mn in Indian aviation indust...Sahara ready to sort out row with Jet Jet to mop up $200 m via QIPs Aviation sector revival by 2011: Patel

Belgaum: Air India is likely to receive about Rs 800 crore as the first tranche of equity infusion from the Government by December, Civil Aviation Minister Praful Patel said.

In turn, the Government would review the progress the national carrier makes in implementing a series of cost-cutting and saving enhancement measures on a monthly basis, he told reporters on the sidelines of a function.

"We will see the first tranche of equity infusion in Air India coming in by December," Patel said, adding that the national carrier was initially looking at around Rs 800 crore for the first two months, Patel said.

His announcement came two days after a meeting of the Group of Ministers, headed by Finance Minister Pranab Mukherjee, on the financial health of Air India and the cost- pruning measures it was implementing.

The GoM also approved an interim plan till March which would have to be implemented by the ailing carrier to justify Government's support.

Patel had earlier said that government assistance in terms of equity infusion or loans would come in tranches, depending on the airline making a recovery by implementing the cost-cutting measures.

"We have decided to put more money but will review progress (of cost-saving measures by the airline) every month," he said.

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Comments

» 5 STAR HOTELS

Posted by ABCD on 2009-11-15 19:11:10.436241+05:30
WHY AIR INDIA PILOTS ARE PUT UP IN 5 STAR HOTELS BOTH IN INDIA AND ABROAD? WHY THEY CANNOT BE ACCOMODATED IN BUDGET HOTELS? THIS IS NOT ONLY HUGE DRAINAGE OF MONEY BUT ALSO GIVES A FALSE SENSE OF SUPERIORITY COMPLEX TO PILOTS WHO DAMN CARE FOR CMD, DIRECTORS AND GENERAL MANAGERS----WHY MANAGEMENT IS NOT ABLE TO CHANGE THE HOTELS? SURELY 5 STAR HOTEL IS NOT PART OF WAGE AGREEMENT-----ACTUALLY HOTELS ARE PRESSURISING AI TOP BOSSES NOT TO CHANGE ---FEARING LOSS OF REVENUE---FOR PAST 20 YEARS INDIAN AIRLINES AND AIR INDIA HAVE BEEN THE MAIN SOURCE OF REVENUE OF HOTELS

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» First Tranche of AI equity infusion

Posted by Shadi Katyal on 2009-11-15 06:13:44.879005+05:30
Here is an airline which used to be Maharaja calss when it was a private company run by TATA who original started it.Now one can call it a beggars line and any infusion is a waste of funds which could be utlised for eduction,potable water and health. It is ame old story of PSU and what is the return on these funds? Business of any kind runs on profit and loss and here is an airline which have largest number of employees per aircraft and one wonders if there are any ghost employees also. 75-80% of foreign travelers utilise any foreign airline than this undisciplined airline. Look at the routes and see how many seats are filled for Europe and USA. Niether the pilots nor the staff care for service and rudeness of the staff starts as soon as you reach the coutner to checkin. What a shame that we have a minister who encourages the employees to go on strike as he will not punish anyone Kindly sell it to private or scrap it as these looses are not beneficial to Indians.

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» Air India equity infusion

Posted by R.Gopu on 2009-11-14 20:59:15.703356+05:30
It is better to hand over to the original owner Tatas for mutual interest of industry and the government and also for the public. Government can not revive this air line

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» AI equity infusion

Posted by S L Gera on 2009-11-14 19:15:49.664457+05:30
Air India is a national carrier and therefore the government must not allow it to be liquidated because of shortage of funds. But one wonders if the Airlines has to take loan from the Banks to pay PLI to its employees, how will the equity infusion of a mere Rs. 400 crores a month would help the airline to improve its bottom line? The two national carriers were probably not incurring any significant losses before their merger. These losses have been increasing by leaps and bounds after the merger whereas the Minister for Civil Aviation and the agency which recommended merger had given a presentation to the government that the airline will make a profit of Rs. 600 crores annually after the merger. This must be investigated by the government and accountability fixed. Another thing that needs to be investigated is the huge order for new aircraft which too are responsible for mounting losses as the airlines has surplus capacity.

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» tranche

Posted by yohan on 2009-11-14 16:35:49.822233+05:30
we welcome the step by the govt for the equity infusion to save the national carrier. side by side, an investigation should be made how the huge loss of 6000 crores occurred in 3 years, after the merger of air india and indian airlines. if there is any foul play, it should be brought to light. hope the govt can come out clear on this.

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First tranche of AI equity infusion by Dec: Patel

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