New Delhi: While one of Air India's pilots' unions, Indian Commercial Pilots' Association (ICPA), has written to Prime Minister Narendra Modi backing privatisation of the debt-laden airline, the civil aviation ministry has instead recommended that the current turnaround plan should continue since the airline's profitability has been steadily improving.
An official in the ministry told FE that it has written to the PM suggesting that the government support the carrier by infusing about Rs 3,000 crore at the earliest, which is the cumulative shortfall in equity that had been promised to the airline since the announcement of it turnaround plan in 2011.
“We have said that the turnaround plan should be implemented and the shortfall in equity of about Rs 3,000 crore be met at the earliest for the airline to profitably continue operations without having to borrow from banks or the market,” the official said.
The government had announced plans to infuse almost Rs 30,000 crore in equity over a decade, but equity support has being untimely because of a widening fiscal deficit.
Read news in full 27/05/14 Roudra Bhattacharya/Finaicial Express
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