Air India to get Rs 1,713 crore as equity support

The centre has agreed to grant equity support to Air India under the Rs 30,000 crore bailout package

GN Bureau | November 28, 2016


#Air India   #equity support   #bailout package  

 State run carrier Air India will receive less than half of the equity support it sought from the government this fiscal. The national carrier had sought Rs 3,900 crore from the government, while the latter has agreed to grant only Rs 1,713 crore in 2017 fiscal, The Financial Express reported.

The government is granting equity support to Air India under its plan of Rs 30,000 crore bailout package, the report said.
 
Sources said due to less financial support from the government, Air India is likely to face hardships to meet its operational and financial targets. Notably, for the first time in a decade, Air India posted an operating profit of Rs 105 crore in the last fiscal.
 
“Air India is going to induct new aircraft and would require funds for that and to meet other key expenses. The only way left is to approach the banks which means rise in our interest cost,” an official said. 
 
According to the report, during the April-June quarter of the current fiscal, the airline registered an operational loss of Rs 246.14 crore. The target fixed by Air India for operating profit for the first quarter of 2016-17 was Rs 87.28 crore. The reason attributed for the loss during the quarter was decline in revenue yields by around 6 percent over the budgeted target resulting in decline in passenger revenue. Fall in cargo revenue compared was also emerged as one of the reason behind depleting earning.
 
Sources said the national carrier, this year, is slated to induct 14 Airbus A320 aircraft and 6 Boeing Dreamliner (787) and three 777 aircraft on lease. The airline also needs additional manpower to run a new fleet of aircraft.
 
 

Comments

 

Other News

Sowing wheat earlier can help increase yields in India: US researcher

Yield gaps in wheat production in India can be countered with an earlier sowing date, says a University of Michigan researcher.   Using a new way to measure wheat yields, Meha Jain, assistant professor at the U-M School for Environment and Sustainability, found that the wheat yie

Giving birth as a Baiga

Kharpariya village, about 50 km from the headquarters town of Madhya Pradesh’s Mandla district, is like many villages in the region, home to the Baiga, deemed a particularly vulnerable tribal group (PVTG) for whom permanent contraception methods are banned to prevent extinction. However, care for p

Being the prime minister’s brother

Somabhai Modi says he remembers only one occasion when he offered his younger brother prime minister Narendra Modi advice regarding work. This, he says, was when Modi was chief minister of Gujarat. After one of his weekly grievance redressal sessions, the then chief minister had enquired after the well-b

Should ration cards not linked to Aadhaar be rendered ineligible?

Should ration cards not linked to Aadhaar be rendered ineligible?

INS Kiltan commissioned into Indian Navy

 INS Kiltan, the third anti-submarine warfare (ASW) stealth corvette built under project 28 (Kamorta class), was commissioned into the Indian Navy by defence minister Nirmala Sitharaman at the naval dockyard in Visakhapatnam.    The anti-submarine warfare stealth corvet

SAIL`s special grade steel used to build stealth corvette

Maharatna enterprise, Steel Authority of India Ltd. (SAIL) has supplied defence grade micro-alloyed grade of steel (DMR 249A) steel plates for the indigenously built anti-submarine warfare (ASW) stealth corvette INS-Kiltan commissioned into Indian Navy.    SAIL’s integ



Video

Grand Diwali celebrations in Ayodhaya on eve of diwali

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter