New Delhi: In what may come as a big fillip to Air India, the government is likely to take up for approval on Thursday its turnaround plan (TAP), including the issue of infusion of additional equity, in a bid to shore up the precarious financial position of the cash-strapped carrier.
The Cabinet Committee on Economic Affairs (CCEA) might take a decision on the national carrier's TAP as well as its Financial Restructuring Plan (FRP) that was approved by an SBI-led 18 banks' consortium last month, official sources said.
Besides, the issue of induction of the much-awaited Boeing Dreamliner-787, which is part of the TAP, may also be considered by CCEA, they said. The delivery of the first of the 27 planes, ordered by the airline, might take place next month after this approval.
As part of Air India's restructuring, the government has decided to infuse Rs 4,000 crore as additional equity during the current fiscal. This would raise the airlines' equity base to Rs 7,345 crore.
The CCEA is also likely to decide on the issue of closing down the defunct state-run feeder air service, Vayudoot, by compensating Air India for its earlier losses.
Vayudoot, launched in 1981 and originally conceived to operate in the northeast, used to fly to over 100 destinations during its existence.
Its financial performance, however, deteriorated considerably, leading to its dissolution and merger of its assets into the erstwhile Indian Airlines (IA) in 1993. In April 1997, Vayudoot's flight operations were transferred to IA and its employees absorbed by it and the then Air India.
The government was a few years ago toying with the idea of re-starting Vayudoot to operate to smaller cities. However, the idea was given up later, the sources said.
Comments
0 comment