Civil Aviation Minister Praful Patel expressed confidence that the loss-making Air India would make a turnaround in two to three years due to various measures initiated by the government including equity infusion of Rs 5,000 crore in a phased manner.
He said the government would do everything possible to bring about the turnaround and in this regard referred to the
setting up of a Committee of Secretaries by Prime Minister Manmohan Singh three months back.
The government not only decided to support the various turnaround measures but also agreed in principle that
infusion of equity will be raised from a meager Rs 145 crore presently to around Rs 5,000 crore in a phased manner," Patel told reporters.
His remarks came in the backdrop of an agitation by a section of Air India pilots to protest against a cut in their
Productivity-Linked Incentive (PLI) due to financial crisis faced by the airlines.
Listing the turnaround measures being initiated by the government, Patel said Air India's high cost debt would also
be reduced to low cost debt.
"These measures, combined with cost-reduction programme, and a revenue enhancement programme by Air India would certainly ensure a turnaround in next two to three years," the minister said.