India News
Search Web Directory
News Home
Govt may infuse ₹2,100 crore in Air India as short-term capital
Posted on 11th July 2018
Mumbai: National carrier Air India Ltd, which has asked the central government to revive its equity infusion after its sale plans stalled, is seeking ₹2,100 crore from the government to address its immediate operational needs, two senior officials of the airline told Mint.

However, this infusion will only take care of the airline’s short-term capital requirements and the national carrier could have to dip into the market again to raise money for its fleet and other expansion plans, which include future procurement of aircraft on lease.

“While the airline needs about ₹2,100 crore to address its immediate working capital and other operational requirements, it could need a larger amount in the longer term to lease planes and expand operations to compete with other domestic and international airlines,” said one of the officials, who did not want to be named.

Pending aircraft orders of Indian airlines exceed 1,000. This is the third-largest in the world after the US and China. Low-fare carriers account for a large chunk of the order book, according to aviation consultancy CAPA India.

However, Air India could see its domestic market share drop to well below 10% as it has not increased its fleet size as much as its competitors, especially low-fare carriers, over the last few years.

In a 4 June report titled Air India Privatization Setback, CAPA India said that the national carrier has plans to induct just nine aircraft, on lease, primarily for replacement rather than expansion. “As a result, Air India will continue to lose (domestic) market share and relevance, dropping well below 10% (from 12.8% during May 2018),” it said.

“The government is expected to infuse equity into Air India to fund its operational and working capital requirements,” said an aviation ministry official.

“The government is committed to provide Air India with necessary financial resources for its successful turnaround,” the official said, without elaborating on the amount the government plans to infuse into the airline this time. An Air India spokesperson said that the equity infusion from the government has not come through yet.

“This is not in Air India’s hands. The government and the civil aviation ministry will have to decide on the amount and the time when they want to make this infusion into the national carrier,” the spokesperson said.

Air India, which has delayed payment of salaries to some of its employees during the last few months, has also floated a tender to raise ₹1,000 crore (from banks) in June to meet its working capital requirements.

News agency PTI had on 3 June reported that Air India had raised ₹6,250 crore from various banks between September 2017 and January 2018 for working capital requirements and other needs.

Air India has a net debt of over 50,000 crore.

Jayant Sinha, minister of state (aviation), on 15 June said that the government is drawing up plans for equity infusion into the airline, which had been frozen after the announcement of strategic divestment of the carrier.

The Congress-led United Progressive Alliance (UPA) government had in 2011 earmarked ₹30,231 crore to the national carrier, which was to be infused into the airline during 2012-2021 on the condition that the airline achieved some of the key operational targets earmarked to it.

This was a part of the government-sponsored Turn Around Plan (TAP) that was charted to bring Air India back to profitability. Air India has not reported net profits since its merger with Indian Airlines in 2011.

Till date, the airline has received more than 26,000 crore under the bailout package announced by the then UPA government in April 2012.

Meanwhile, aviation consultancy CAPA India added in its report that the national carrier is expected to lose a total of $1.5-2.0 billion over fiscal years 2019 and 2020.

Related Companies: Air India   

Other Latest News
Nasscom partners Hiroshima Govt for Japan-India IT corridor
Posted on 23rd October 2018
IT industry body Nasscom on Monday said it has signed a letter of intent with the Hiroshima Government to work together in creating Japan-India IT corridor to facilitate partnerships between companies from both nations.

“The Hiroshima Government will co-invest with Nasscom in creating Japan India IT Corridor that could be at the forefront of promoting B2B cooperation and talent transfer from India to Japan,” Nasscom said in a statement.

Sensex cracks 34,000-mark, Nifty below 10,200 on weak global cues
Posted on 23rd October 2018
Mumbai: The benchmark BSE Sensex on Tuesday extended its losing spree for the fourth straight day and dipped below the 34,000-mark in early trade, on unabated foreign fund outflows and selling by domestic institutional investors amid weakness in Asian markets.

Moreover, the rupee depreciating by another 23 paise to 73.79 against the dollar also dampened sentiments.

CIL offers additional supplies to power sector
Posted on 23rd October 2018
Coal India (CIL) has offered five million tonne of extra coal to state-run NTPC on a credit basis and agreed to supply 7.94 lakh tonne of domestic coal per month to power utilities on condition that the power utilities will cut on imports, an official said. The miner has prioritised coal supplies to the power stations of eastern states for ensured generation to meet the increased power demand during the just concluded Durga Puja festival.

Russia’s VTB seeks apex court approval to bid for Essar Steel
Posted on 23rd October 2018
Crinium Bay Holdings, a member of Russia’s VTB group, has moved the Supreme Court seeking permission to bid independently or jointly with “a suitable partner” for embattled Essar Steel (ESIL). VTB, through Crinium Bay, which holds a 40% equity in Numetal, had earlier submitted the resolution plans for Essar in its capacity as a shareholder of Mauritius-based Numetal, which was later on October 4 held to be ineligible to bid by the SC.

YouTube launches investment in educational content, creators
Posted on 23rd October 2018
Google-owned YouTube has announced an investment of $20 million in educational content and creators to expand its initiative to support people across the world in sharing knowledge and pursuing learning on the platform.

YouTube said on Monday that it was creating a new Learning Fund programme to support creators who make some of the best learning content on YouTube, the world’s largest video-sharing site,

» Post a FREE Classified Advertisement
Inviting Real Estate Agents, Job Placements Agents, Educational Institutes, Software Service Providers, Real Estate Builders, Marriage Bureaus, Travel Agents, Restaurant Owners, Health & Fitness Centers and other Local Businesses to Post a FREE Classified Advertisement on Classifieds Website.
Jobs in India India Real Estate Automobiles Matrimonials Beauty & Fitness

Add a comment for Govt may infuse ₹2,100 crore in Air India as short-term capital
Please only use this form to enter comments on the above company. All comments are reviewed before they are displayed on the web site. Not all comments may be displayed. Check back with us to see if your comments have been displayed.
If you want us to email the comments posted by users, please Subscribe by email
Security Code*

Be the first person to write a business review for Govt may infuse ₹2,100 crore in Air India as short-term capital

Most Read News

Rupee weakens 9 paise to 73.92 against US dollar in early trade

Rs 15,000 crore in 5 days: Amazon, Flipkart clock record numbers during festive sales

Good news: Pink Line Delhi Metro to open by Diwali

ICICI Bank gets RBI clearance to appoint Sandeep Bakhshi as its MD and CEO

#MeToo: Women journalists demand M J Akbar's dismissal, write to President

More India News

  India Web Directory
Business Profiles
Automotive Directory
IT/ITES/BPO Directory
Hotel Directory
Health Directory
Business Directory
Gems & Jewellery
Education Directory
Real Estate Directory
Agriculture Directory
Logistics Directory
Yellow Pages
NRI Guide
Photo Galleries
Global Web Directory
*** FREE India Classifieds
Order Premium Listings
Submit a Site
Business Reviews
About us
Link to us
Contact us
Google Search Keywords: India Catalog, IndiaCatalog, India Web Directory
    © 1999 - 2018
    All Rights Reserved
Privacy Statement