By Rob Morris
Air India gets a short-term reprieve to pay off mounting debts as it bids to secure funds.
India’s national carrier Air India has received a short-term reprieve to pay off mounting debts as it bids to secure emergency funding from the government.
On Saturday, Indian media reported that the airline had been given three months to settle rising fuel bills after presenting the government with its recovery plan. It is believed the airline, which regularly flies to the Middle East, has $4bn worth of debts and is losing $50m a month.
Arvind Jadhav, Air India’s managing director, met with committee officials and asked the government to invest up to 100bn rupees ($2.09bn) in the ailing carrier.
While the airline’s request for more time to settle its fuel bill has been granted, India’s Petroleum Ministry demanded arrears be paid to state-owned refiners. The amount due in May had already reached $110m, with further increases likely since then.
The government has outlined various conditions that Air India has to meet to secure the bail-out money. Its holding business National Aviation Company needs to cut costs dramatically and scrap its wage bill, which accounts for around 45 percent of the airline’s 30bn rupees wage bill. It must also appoint an external auditor to ensure the airline carries out cost-saving initiatives.
Next month, the committee will meet again to discuss Air India’s future. In the meantime, a new Air India board, comprising leading Indian business figures, is expected to be announced soon. It will have an international advisory committee made up of senior aviation representatives.
Both the airlines of Indian Government, Air India and Indian Airlines never maintaining their departure and arrival schedules properly. And they never have any proper reply for such conditions. And most of the cabin crews not in pleasing personality, all the time. Then how the people will like to travel in such airlines. Recently launched private airlines earning lot of money in India. The employees in the government airlines should learn these things from them. They should not thing, they are working only to get salary. But also to develop the airlines as well as the nation. Because they are getting the salary from the government.
Air India screws themselves with their poor standards of service but still have their feeling that they are the national carrier. There has been a sea of changes in this industry where as these carriers are still in 90s where people where so much dependant on these airliners to commute,now its not the case airliners are at the tip of your fingers. And now they go back to government to help them again with our hardworking taxpayers money. Doesnt this sound ridiculous!!!!!!