PM keen on early revamp of ailing AI

“We will resolve the issues surrounding Air India. I will request Pranab Mukherjee (who heads the Group of Ministers on AI's turnaround) to take expeditious decisions in the matter,” the prime minister told a group of editors, here,  in reply to a question on the issue.

With this the Air India may expect an additional equity infusion of Rs 1,200 crore soon. The GoM had last week reviewed the airline’s turnaround and financial restructuring plans. The Air India expects the third tranche of Rs 1,200 crore equity in July even as it plans to operationalise two subsidiaries on MRO (Maintenance, Repair and Overhaul) and ground handling as soon as it gets the official nod.

The government is also understood to have asked the airline to prepare a 8 to 10-year-plan of resource generation to revamp itself by fully implementing the turnaround programme. The plan would be prepared on how much equity infusion would be required by the national carrier to make it self-sustaining and how it would generate resources to re-emerge as a leading airline of the region, sources said. The cash-strapped carrier is seeking a total infusion of Rs 5,000 crore during this financial year itself, sources added.

The government has already infused Rs 2,000 crore in 2009-10, raising the airline's equity base to Rs 2,145 crore.