GoM approved In-principle Additional Equity Infusion of R 1200 crore for Air India

A Group of Ministers (GoM) on 18 July 2011 approved in-principle additional equity infusion of 1200 crore and payment of 532 crore for operating VVIP and rescue flights for Air India. GoM headed by Finance Minister Pranab Mukherjee held a meeting to discuss finance issues confronting the ailing carrier in the backdrop of the state-owned airline's massive cumulative loss and debt burden of about 67000 crore.

The GoM also granted approval for payment of 532 crore for operating VVIP and rescue flights for the government and formation of strategic business units for ground-handling. AI was given the Rs 532 crore relief for evacuating Indians from Egypt.

In the meeting the GoM asked the finance committee to prepare a note on Air India's turnaround plan.

The national carrier has to repay Rs 20415 crore worth of loans before the end of the fiscal 2011-12. The airline whose combined debt, losses and dues are almost Rs 87000 crore at present needs Rs 6000 crore immediately to survive. AI has working capital loans of Rs 22000 crore along with loans of Rs 40000 crore, dues of Rs 5000 crore and accumulated losses of Rs 20000 crore.