Air India puts out hand for USD800 million in government support
04-Mar-2009 |
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Air India’s parent, National Aviation Co of India Ltd (NACIL), has sought financial assistance of INR39.81 billion (USD798.2 million) from the Indian Government, according to the Civil Aviation Ministry. The package comprises an equity injection (30.9% of the total package and soft loans (69.1%).
The latest package is significantly more than a proposal outlined last year for an equity infusion of USD207 million and a soft loan of USD311 million.
However, on 02-Mar-09 the Electoral Commission announced the dates of the forthcoming general election. Restrictions now apply on the budgetary mandate of the government during the pre-election period. As a result, it is highly unlikely that any decision on Air India’s request will be taken until after the new administration is in place. In the meantime, the carrier will have to rely on further bank debt backed by sovereign guarantees.
(c) Centre for Asia Pacific Aviation. Date posted: 04-Mar-09
These are extracts from the latest edition of The Monthly Essential India
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Air India puts out hand for USD800 million in government support 
