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Aviation

Government seeks parliament nod to pump Rs 2,300 crore into Air India

December 20, 2018: Prime Minister Narendra Modi has sought Parliament

Government to allocate Rs 3,900 crore to service Air India debt
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Government to allocate Rs 3,900 crore to service Air India debt

December 20, 2018: Prime Minister Narendra Modi has sought Parliament's approval for an equity infusion of Rs 2,300 crore ($330 million) in Air India. This move by the government effectively rules out an immediate revival of its plan to sell the cash strapped carrier.

The government recently failed to find takers for its plan to privatise the airline. Air India, which was offered along with $5 billion of its debt, is surviving on taxpayer bailouts after losing money for years.

Air India, which has $8 billion debt on its book, hasn’t made money in more than a decade.

The government has a four-part strategy for Air India -- a financial package, a branding refresh, organizational and governance reforms, and a plan to motivate staff, Jayant Sinha, junior aviation minister, said last week.

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