AI to get Rs 800-cr equity infusion
Govt Bails Out Airline, Future Help Will Depend On Cost-Cutting Targets
The Centre on Thursday approved the first bailout for the ailing national carrier Air India in the form of a Rs 800-crore equity infusion this fiscal.
The airline currently has a paid-up equity of Rs 145 crore while its liabilities run into thousands of crores, something that has put a question mark on its survival.
The biggest challenges for the AI-Indian Airlines combine — National Aviation Company of India Limited (Nacil) — are implementing the controversial merger and paying for the 111 new planes worth Rs 55,000 crore. An aviation ministry statement said, “Nacil is currently facing severe financial losses which are compounded by its costly legacy assets, weakening revenue stream and high cost structure, resulting in rising liabilities.... (it has) initiated a multi-pronged turnaround plan.”
POSSIBEL QUEASTION ON: NACIL
The National Aviation Company of India Limited (NACIL) was incorporated under the Companies Act 1956 on 30 March 2007 and is owned by the Government of India. Its registered Office is at Airlines House in Delhi and Corporate Office is situated at the Air India Building in Mumbai. The Company was created to facilitate the merger of the two main state-owned airlines in India: Air India, with its subsidiary Air-India Express and Indian Airlines, together with its subsidiary Alliance Air.
HEADQUARTERS: Delhi (Registered Office) Mumbai (Corporate Office)
KEY PEOPLE: Arvind Jadhav (Chairman and MD)