NEW DELHI: Air India has sought rapid recovery of Rs 2,200-crore fairness infusion from the federal government to fulfill its operational necessities as the method to sell the debtladen airline has now been put at the again burner.
Once this determination is formally followed via the gang of ministers led via FM Arun Jaitley, AI might be requested to consider its fleet necessities and spot what number of planes it needs to tackle hire to ensure its market percentage does not get eroded further as non-public Indian carriers have jointly ordered nearly 1,000 planes. Renting planes, as an alternative of shopping for them, does not need executive nod.
"The government has given guarantee for a Rs 1,000-crore loan (which had been revoked by banks earlier). We hope to give May's flying allowances - which form up to 65-70 per cent of a pilot's total pay -by Thursday," said a senior airline official.
Meanwhile, those concerned with the failed divestment of AI claim that certain players are still in touch with the federal government, announcing they would be concerned about obtaining the airline if the terms of sale are modified. "There is a precedent for that. Terms of Pawan Hans divestment and handing over management of Ahmedabad and Jaipur to private players were changed after the first attempt to do so drew a blank. People interested in AI also expect the same. AI is losing Rs 15 crore a day and this figure will rise as oil prices go north. Deferring AI sale will mean a huge hole of close to Rs 6,000 crore in the exchequer's pocket in a year," said an individual close to the failed transaction.
While "disappointed" at AI's deferred divestment, CAPA India head Kapil Kaul said, "Continuing government ownership with no clear road map will lead AI to extreme insignificance and possibly closure. Funding large-scale losses is grossly unfair to the tax payer. There will never be a perfect timing for AI divestment as conditions have to be structured by some bold decisions. The government should now focus on a comprehensive enterprise-wide restructuring under a special administration to scale down losses."
Meanwhile, pilots anticipating their flying allowances say they are operating in very demanding conditions that may impact protection. The southern area of Indian Commercial Pilots' Association has issued a listing of do's and don'ts for its individuals that may result in flight delays via adhering strictly to all norms.
Once this determination is formally followed via the gang of ministers led via FM Arun Jaitley, AI might be requested to consider its fleet necessities and spot what number of planes it needs to tackle hire to ensure its market percentage does not get eroded further as non-public Indian carriers have jointly ordered nearly 1,000 planes. Renting planes, as an alternative of shopping for them, does not need executive nod.
"The government has given guarantee for a Rs 1,000-crore loan (which had been revoked by banks earlier). We hope to give May's flying allowances - which form up to 65-70 per cent of a pilot's total pay -by Thursday," said a senior airline official.
Meanwhile, those concerned with the failed divestment of AI claim that certain players are still in touch with the federal government, announcing they would be concerned about obtaining the airline if the terms of sale are modified. "There is a precedent for that. Terms of Pawan Hans divestment and handing over management of Ahmedabad and Jaipur to private players were changed after the first attempt to do so drew a blank. People interested in AI also expect the same. AI is losing Rs 15 crore a day and this figure will rise as oil prices go north. Deferring AI sale will mean a huge hole of close to Rs 6,000 crore in the exchequer's pocket in a year," said an individual close to the failed transaction.
While "disappointed" at AI's deferred divestment, CAPA India head Kapil Kaul said, "Continuing government ownership with no clear road map will lead AI to extreme insignificance and possibly closure. Funding large-scale losses is grossly unfair to the tax payer. There will never be a perfect timing for AI divestment as conditions have to be structured by some bold decisions. The government should now focus on a comprehensive enterprise-wide restructuring under a special administration to scale down losses."
Meanwhile, pilots anticipating their flying allowances say they are operating in very demanding conditions that may impact protection. The southern area of Indian Commercial Pilots' Association has issued a listing of do's and don'ts for its individuals that may result in flight delays via adhering strictly to all norms.
Air India seeks Rs 2,200 crore equity infusion
![Air India seeks Rs 2,200 crore equity infusion]()
Reviewed by Kailash
on
June 20, 2018
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