Air India requires USD620 million to “keep it going”

In late Aug-2009, Minister for Civil Aviation, Praful Patel, announced Air India, which has “never operated smoothly”, requires an equity infusion of approximately USD620 million to “keep it going” and strengthen the carrier’s equity base from the current level of USD30.3 million. Mr Patel added that while he believes the carrier “should be sold”, he does not subscribe the word ‘bailout’ to Air India, as the Indian Government has “never spent a rupee for the airline”. [1145 words]

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This report contains the following subheadings:

• Reworks debt and seeks approval for bond issue
• Culls employee incentives by 50%
• Transfers additional capacity to Air India Express

This report contains the following charts and tables:

• Air India delivery schedule: 2009 to 2013
• Air India passenger numbers and passenger numbers growth: Aug-2008 to Jul-2009
• Air India domestic market share: Aug-2007 to Jul-2009