Social Icons

twitterfacebooklinkedin

Monday, 14 July 2014

Govt raises debt-laden Air India budgetary allocation to Rs 7,069 crore

Mumbai: Debt-laden Air India has been given a lifeline by the government in the form of a budgetary allocation of Rs 7,069 crore. The allocation consists of equity infusion of Rs 6,500 crore and a plan outlay of Rs 569 crore, a civil aviation ministry statement said.
Air India, which has a debt of about Rs 44,000 crore, is looking to turn around operations on the back of achieving better operational efficiencies, increasing passenger revenues and periodic equity infusion from the government.

According to an Air India official, the airline had asked the government to compensate with Rs 780 crore for forex losses on account of currency fluctuation in FY13 and 2014. This amount was requested by the airline in addition to the equity investment by the government, which includes Rs 30,000-crore equity infusion from the government over nine years starting 2012-13, as per the financial restructuring plan of the airline.
Read news in full 12/07/14 Financial Express

No comments:

Post a Comment