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
Posted on 18th August 2018
Prime Minister Narendra Modi reviewed today the flood situation in rain-battered Kerala at a high-level meeting in Kochi.

Earlier, there were reports that the prime minister's helicopter could not take-off for an aerial survey of flood affected areas due to bad weather. But, there was no official confirmation from the state and the Union government.

Posted on 18th August 2018
Benchmark Sensex rebounded by over 284 points to close at 37,947.88 on Friday, while the NSE Nifty finished at a fresh lifetime high on the back of robust gains in FMCG, metal and banking stocks amid positive global cues.

Brokers said sentiment got a lift on uninterrupted buying by domestic institutional investors, while global markets were mixed after the US and China agreed to resume trade talks.

Posted on 18th August 2018
Hinduja flagship firm Ashok Leyland on Friday said it had bagged an order from Bangladesh Road Transport Corporation (BRTC) for supply of 300 buses.

The order is for double decker buses which have been procured against a tender under Indian Line of Credit, the company said in a statement.

Amazon’s India chief tells team to turn off work email at night
Posted on 18th August 2018
Bangalore: Amazon’s country manager for India has proposed a radical idea: Log off; get a life. In an email to his team earlier this month, Amit Agarwal counselled colleagues to stop responding to emails or work calls between 6pm and 8am in the interest of “work-life harmony.” He also talked about the importance of work discipline and how to draw the line.

Spectrum price: RCom gets relief from Supreme Court
Posted on 18th August 2018
The Supreme Court on Friday stayed a telecom tribunal order asking Reliance Communications to pay the difference between the price for spectrum in the 800 MHz band in 2013 and its auction price in 2015, as the company is in the process of selling part of its spectrum to Reliance Jio Infocomm.

» 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

Paytm Mall aims to generate $10 bn in annualised gross sales by March 2019

No more free insurance for train travel, opt out or pay up: Railways

Infosys to go ahead with Kolkata project worth Rs 1 bn without SEZ status

Wipro, ITC, Cadila take lead in race to acquire Complan


More India News

Photo Gallery

KubotaTractor(10 Images)KubotaTractor.
Amala Paul(12 Images) Amala Paul
Fitoor(11 Images)Fitoor
  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