AI expects Rs 1200 crore allocation in next budget
2010-02-04 [13:46:00 hrs] | | Air India expects to have a Rs 1,200 crore allocation in the forthcoming budget, a Central Government Minister said.
Speaking to reporters on the sidelines of a function in Aamby Valley, Maharashtra Union Civil Aviation Minister, Praful Patel said, ‘we expect a Rs 1,200 crore provision for Air India in the budget.’
On equity infusion into Air India by the government, Patel said that he expected the Rs 800 crore equity infusion process to be completed over the next eight to ten days.
Yesterday, Patel had said in Delhi that while the infusion was likely to occur over the next few days, the government wanted Air India to take ‘extraordinary’ measures for its turnaround.
‘We are moving the Cabinet (for equity infusion of Rs 800 crore), a note has already been circulated, I think by next week the Cabinet approval should come,’ Patel had said after a meeting of the Group of Ministers formed on the revival of Air India.
‘These are testing times for the aviation industry, both internationally and domestically, and extraordinary measures need to be taken,’ Patel said.
The target of reducing costs by Rs 2,000 crore by the national flag-carrier until March was unlikely to be met.
‘The target of reducing costs by Rs 2,000 crore by March is unlikely to be met...so far costs have been cut by Rs 700-800 crore,’ he said.
Further assistance would only be given on achievement of specific revenue enhancement and cost reduction targets by the airline, the Minister said.
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