Government to infuse Rs 30,000 crore in Air India over 9 yrs
Civil Aviation Minister Ajit Singh held that over the next 9 years, the government will instill around Rs 30,000 crore in cash-strapped Air India as part of a turnaround plan for the state-run airline.
He held that in order to improve its operating and financial performance, Air India has already taken several steps viz. rationalization and removal of some routes, phasing out old fleet, freezing of employment in non-operational areas and dismantling of the Frankfurt hub.
The TAP (Turn Around Plan) sanctioned by the CCEA (Cabinet Committee on Economic Affairs) envisages a business model that includes independent ground handling and MRO (Maintenance, Repair and Operations) from the primary airline business.
The debt-ridden carrier has outstanding loans and dues worth Rs 67,520 crore, of which Rs 21,200 crore is working capital loan, Rs 22,000 crore long-term loan on fleet acquisition, Rs 4,600 crore vendor dues besides an accumulated loss of Rs 20,320 crore.