Air India awaits unspecified bailout, may re-think on fleet | india | Hindustan Times
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Air India awaits unspecified bailout, may re-think on fleet

State-run Air India is on a survival mode and will soon submit a fresh plan to the government seeking soft loans and an equity injection to ride out of its financial difficulties, the carrier’s chairman and managing director Arvind Jadhav said. Samiran Saha reports.

india Updated: Jun 08, 2009 23:40 IST
Samiran Saha

State-run Air India is on a survival mode and will soon submit a fresh plan to the government seeking soft loans and an equity injection to ride out of its financial difficulties, the carrier’s chairman and managing director Arvind Jadhav said.

He said the carrier was heading for a “very drastic” route rationalization programme and did not rule out a deferred deliveries of aircraft the airline has ordered.

Air India, with its losses estimated at Rs. 4,500 crore, badly needs government help. “There is a need to take a hard look,” Jadhav told Hindustan Times.

“We are yet to submit the proposal to the government. I have asked all the departments prepare a white paper on cost saving and revenue generation. We are yet to work out how much the airline would ask from the government,” said Jadhav, who was speaking on the sidelines of the 65th general body meeting of the International Air Transport Association here on Monday.

While strongly denying that the airline was looking at a bailout package of Rs 14,000 crore in some media reports, Jadhav said “People are coming out with all kinds of figures. We have not even finalised the paper. How can we specify the number?” he said.

On being asked if the route rationalisation plan could mean deferring deliveries of aircraft that it has ordered Jadhav, said “We would not like it to happen, but ….”, suggesting that such a step could not be ruled out.