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Air India to defer aircraft delivery; Govt aid on cards

Air India to defer aircraft delivery; Govt aid on cards
PTI
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First Published: Tue, Jul 14 2009. 02 34 PM IST
Updated: Tue, Jul 14 2009. 02 34 PM IST
New Delhi: Government is contemplating capital infusion by way of equity and soft loans for the cash-strapped Air India which has deferred the future aircraft delivery in the backdrop of mounting losses of Rs7,200 crore.
“....An equity infusion and soft loan by the government as a measure of softening the adverse financial situation (of Air India) is contemplated,” Civil Aviation minister Praful Patel told the Rajya Sabha.
Responding to a Calling Attention Motion on Air India, he said the airlines has adopted various measures to improve its financial position.
These included rescheduling/cancellation of future aircraft delivery, rationalisation of routes, manpower and incentives of employees, he said.
The airlines, which was forced to defer payment of June salary to majority of its staff, has piled up a loss of Rs7,200 crore as on 31 March 2009. For the fiscal 2008-09, it is estimated to have incurred a loss of about Rs5,000 crore in a difficult global aviation market.
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First Published: Tue, Jul 14 2009. 02 34 PM IST