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

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

India faces critical shortage of skin donors amid rising burn cases

India reports nearly 70 lakh burn injury cases every year, resulting in approximately 1.4 lakh deaths annually. Experts estimate that up to 50% of these lives could be saved with adequate access to skin donations. A significant concern is that around 70% of burn victims fall wi

Not just politics, let`s discuss policies too

Why public policy matters Most days, India`s loudest debates stop at the ballot box. We can name every major leader and recall every campaign slogan. Still, far fewer of us can explain why a widow`s pension is delayed or how a government school`s budget is actually approved. That

When algorithms decide and children die

The images have not left me, of dead and wounded children being carried in the arms of the medics and relatives to the ambulances and hospitals. On February 28, at the start of Operation Epic Fury, cruise missiles struck the Shajareh Tayyebeh school – officially named a girls’ school, in Minab,

The economics of representation: Why women in power matter

India’s democracy has grown in scale, but not quite in balance. Women today are active participants in elections, influencing outcomes in ways that were not as visible earlier. Yet their presence in legislative institutions continues to lag behind. The Nari Shakti Vandan Adhiniyam was meant to addres

India will be powerful, not aggressive: Bhaiyyaji

India is poised to emerge as a global power but will remain rooted in its civilisational ethos of non-aggression and harmony, former RSS General Secretary Suresh `Bhaiyyaji` Joshi has said. He was speaking at the launch of “Rashtrabhav,” a book by Ravindra Sathe

AI: Code, Control, Conquer

India today stands at a critical juncture in the area of artificial intelligence. While the country is among the fastest adopters of AI in the world, it remains heavily reliant on technologies developed elsewhere. This paradox, experts warn, cannot persist if India seeks technological sovereignty.