New Delhi: India will infuse Rs20 billion ($370 million) in equity into ailing state-run carrier Air India as part of a turnaround and financial restructuring plan, a government statement said on Friday.
Last year, the government approved a $5.8 billion bailout plan for the national carrier. The latest equity infusion is part of that plan.
India’s oldest airline Air India Ltd is expected to post a net loss of Rs.4,270 crore in the current fiscal year, according to an internal estimate, in a turnaround that some experts and airline executives see as a validation of its revival plan.While not comparable with the performances of India’s listed airlines—Jet Airways (India) Ltd, the country’s second largest by passengers carried, and SpiceJet Ltd, the second largest low-fare airline—the loss is sharply lower than the Rs.7,853 crore loss it posted in 2011-12. Air India had posted a loss of Rs.6,865 crore in 2010-11.
Jet Airways’ net loss in the first half of the current fiscal was Rs.74.97 crore and that of SpiceJet Rs.107.37 crore. The grounded Kingfisher Airlines Ltd has posted a half-yearly loss of Rs.1,404.34 crore in the current fiscal.
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