New Delhi: The government is considering injecting funds into ailing national carrier Air India by way of equity and debt as an initial public offer is unlikely at present, the civil aviation minister said on Tuesday.
State-owned National Aviation Co of India Ltd (Nacil), which operates Air India, has been struggling amid high costs of operations and has sought a government bailout.
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Civil aviation Minister Praful Patel said in a statement to Parliament that the accumulated loss of the company at end March was about Rs7,200 crore ($1.5 billion) and government help was needed.
“The government, in the past, has never assisted Air India, unlike governments in other countries assisted their airlines when in difficulty,” Patel said, adding that an initial public offer could not be possible amid negative market conditions.
“It is in this background that an equity infusion and soft loan by the government as a measure of softening the adverse financial situation is contemplated,” he said.