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Tag: Bail Out Package For Air India

Debt Burdened Govt Run Carrier AI To Receive a Boon Of Rs 1713 Crore

[New Delhi]Loss Making National Carrier To Receive a Boon Of Rs 1713 Crore
Air India to receive Rs 1,713 crore The Govt Run airline is surviving on a Rs 30,231 crore bailout package extended by the previous UPA government in 2012 for a period of up to March 31, 2021.
,National carrier Air India, which is expected to slash its net losses by around 40 % this fiscal, will receive Rs 1,713 crore government funding for the next fiscal.
In the Union Budget for the 2016-17 financial year, presented by Finance Minister Arun Jaitley in Lok Sabha today, the Government-run carrier has been allocated Rs 1,713 crore as part of the Rs 30,0231 crore financial bailout package.
The total outlay for the Civil Aviation Ministry stands at Rs 4,417 crore for the fiscal 2016-17.
Organisation such as Airports Authority of India, Directorate General of Civil Aviation, Pawan Hans Ltd, Bureau of Civil Aviation, among others, come under the Civil Aviation Ministry.
Significantly, Air India had earlier this year sought Rs 4,300 crore worth funds from the government for the financial year, starting A[pril 1, 2016 amid its turnaround plan and stiff competition.

Under the Turnaround Plan (TAP), which runs till March 2021, it has already received Rs 22,280 crore including Rs 3,300 crore in the ongoing fiscal.
Minister of State for Civil Aviation Dr Mahesh Sharma had last week said that Air India losses were expected to come down by 40 per cent to Rs 3,529.80 crore by March this year.
The airline had in the financial year ended March 31, 2015, reported a net loss of Rs 5,859.91 crore.
However, its debt burden stood at Rs 51,367.07 crore, including Rs 22,574.09 crore outstanding on account of aircraft loans, in the previous financial year.

Aviation Minister Tears National Carrier Air India’s Financial Stress

[New Delhi] Aviation Minister Tears National Carriers Financial Stress.
Minister Ashok Gajapati Raju Says That His Air India Is Facing Tremendous Financial Stress
Civil Aviation Minister Raju said today That National carrier Air India is under “tremendous” financial stress and needs to ensure that its team works in a more “cohesive” manner
He Added “Financially, if you look at Air India, it is under tremendous stress. Historically, it has got a legacy and we need to outgrow it,” he said.Air India, which is in the red, has a debt burden of around Rs 40,000 crore and is surviving on a bailout package approved in 2012.
Noting that are plus and minus points, Raju said, “in certain ways, it has to still pull up its socks”.
“I, for one, wish them well. We would wish and are trying to make their team more cohesive because ultimately it is the team that delivers.
Unfortunately for us…Indians are excellent in thought and very difficult to work as a team,” the minister said at an event.
He applauded Air India’s efforts in the recent massive evacuation of Indian citizens abroad from war zones.
In April 2012, the UPA government had approved Air India’s turnaround plan with a committed public funding of Rs 30,231 crore, staggered over a period of nine years, with some specific riders.

DGCA de rostered 2 Pilots Of Air India’s Tail-stroked Plane with194 on Board

[New Delhi] DGCA de rostered 2 Pilots Of Air India’s Tail-stroked Plane with 194 on board
194 people including 7 crew members on board an Air India flight from Mangalore had a lucky escape as long tail portion of the aircraft scraped Mumbai Airport runway during touchdown
Both the pilots have been de-rostered and the Directorate General of Civil Aviation has initiated its probe into the incident,
As per sources The airline has also grounded the aircraft, an Airbus 321, after this incident.
It may be added that National carrier AI Is surviving on a Rs 30,000-crore government’s bailout package.

Loss Making National Carrier Air India Enjoys Boon Of Financial Breather Package

[New Delhi]Loss Making National Carrier Air India Gets Boon Of Financial Breather, Bailout, Package for Revival
Central Government has approved financial bailout package for revival of Air India.
In view of the huge losses suffered by Air India (a Government of India enterprise) for the Continuous years 2007-08 to 2010-11, and its mounting debt burden, the Government decided to formulate a Turn Around Plan and a Financial Restructuring Plan to improve the operational and financial performance of Air India.
The Government approved Air India’s Turn Around plan (TPA) and Financial Restructuring Plan (FRP) on 12.4.2012 that provided for infusion of additional equity by the Government cost reduction and improved operational performance. Union Minister of Finance,Arun Jaitley Informed to a question in Lok Sabha today that The Details Of Above financial support is as under:
[A]Induction of upfront equity of Rs. 6,750 crore;
[B]Equity for cash deficit support of Rs. 4,552 crore from Financial Year 2012-13 till Financial Year 2017-18;
[C]Equity for already guaranteed aircraft loan of Rs. 18,929 crore till Financial year 2012;
[D]Government of India guarantee for repayment of principal amount and payment of interest on the Non Convertible Debenture (NCDs) of Rs. 7,400 crore proposed to be issued by Air India to Financial Institutions, Banks, LIC and EPFO.