Air India to get first bail-out money before Dec | india | Hindustan Times
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Air India to get first bail-out money before Dec

india Updated: Oct 23, 2009 23:58 IST
Samiran Saha

Cash-starved state-run carrier Air India is likely to be given the first instalment of the bail out package before December, a senior official with the civil aviation ministry told the Hindustan Times. He said the fleet acquisition plan of the airline would also be re-looked.

The government has agreed to give Rs 5,000 crore to the carrier, which is in deep crisis because of losses to the tune of Rs 7,200 crore, interest outgo of Rs 4 crore per day and a bank overdraft of Rs 16,000 crore.

“The bail-out package should come to the airline before calendar year ends. This will help the airline meet its financial needs keeping in view the peak travel season, which has already begun,” the official said.

The government will re-look the airline’s fleet acquisition programme. The cash-strapped carrier has placed orders for 111 new aircraft worth Rs 50,000 crore.