High ATF may make Rs 2,000-cr hole into Air India’s bottomline

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New Delhi, Aug 21: losses.

Combined losses for Indian carriers may double to $1.5 billion this year because of higher fuel prices, according to the Centre for Asia Pacific Aviation, an industry consultant.

Our bureau adds from New Delhi: The money will be in the form of equity and soft loans and will be primarily used for capital expenditure and pre-payment of new aircraft.

National Aviation Co. of India Ltd (Nacil), which operates Air India, has sought a Rs1,300 crore equity infusion and a Rs1,000 crore loan from the government as part of a sweeping plan to revamp the state carrier’s operations and ride out accumulated losses. The airline is also looking at the possible sale and lease-back of aircraft to meet working capital requirements, expected to rise from about Rs 6,550 crore in the last fiscal to Rs 9,550 crore in the year to next March, an official said.