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Latest Update: Wednesday24/6/2009June, 2009, 10:23 PM Doha Time
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Govt ready to help Air India with bailout package, says Praful Patel

 

IANS/New Delhi

 

Civil Aviation Minister Praful Patel yesterday said the government would support and help bail out the loss-making national carrier Air India, but stopped short of spelling out the size or nature of the package.

Patel discussed a bailout plan with Prime Minister Manmohan Singh.

“The prime minister was sympathetic. But he has asked to plan out the strategy, cost cuts, judicious use of resources and restructuring of Air India.”

The minister, however, refused to divulge the bailout package but said “unconditional support to Air India will not be easy.”

He also ruled out “open cheque books” for Air India, and argued that if the government was going an extra mile to help the national carrier, then Air India too should reciprocate by means of performance.

Patel also put the onus of the carrier’s performance on its staff and management, and said everyone would now have to work to save Air India from sinking.

Air India, which incurred a loss of Rs40bn last fiscal year and is struggling to cope with a cash crunch, plans to ask for a Rs100bn (about $2bn) bailout package from the central government, a senior official said.

Airline officials, who discussed the carrier’s financial problems with Patel on Tuesday night, will meet top government officials again, seeking help.

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