Govt open for more equity infusion in AI: Patel
Government is open to infuse more equity in Air India provided the national carrier manages to improve its performance, Civil Aviation Minister Praful Patel said on Sunday.mumbai Updated: Jul 26, 2010 00:31 IST
Government is open to infuse more equity in Air India provided the national carrier manages to improve its performance, Civil Aviation Minister Praful Patel said on Sunday.
"Government is ready to look at it (further equity infusion) with an open mind. Government will look at it objectively," Patel told reporters here.
Earlier, Patel, along with Civil Aviation Secretary Madhav Nambiar, attended the Air India board meeting which discussed the company's proposed five-year turnaround plan.
The meeting was also attended by Air India Chairman Arvind Jadhav, Chief Operating Officer Gustav Baldauf, and four independent directors.
Patel said that the air carrier has already received Rs 800 crore from the government, and Rs 1,200 crore more would be given this financial year.
"The Government while appointing the GoM last year had discussed these issues and said it would look at equity induction in a phased manner and based on performance parameters of Air India," he said.
Patel said that Air India was certainly on the recovery path, adding the average revenue went up by Rs 638 crore in the first quarter of 2010.
Of this, passenger revenue stood at Rs 546 crore, showing a growth of 28 per cent while the cargo revenue jumped to Rs 91 crore, up 61 per cent, he said.