Air India may get more equity infusion

The Indian government is considering an additional equity infusion into national carrier Air India, as the loss-making airline aims for a 29 percent increase in its revenue this fiscal year, Civil Aviation Minister Praful Patel said.

The government infused US$172.56 million worth of equity into the carrier last fiscal year ended March 31 and has already budgeted for an additional $258.84 million during the current fiscal, reported Dow Jones Newswires.

"The government stands committed to further infusion of equity (in addition to the $431.4 million)," Patel told a press conference. He didn't elaborate how much more equity would be put in.

The global economic slowdown, high jet fuel prices and a failure to achieve profitable synergies through a merger with erstwhile Indian Airlines forced the national carrier into constant losses since 2007. Flight operations to unprofitable local routes and the burden of a $323.55 million 111-aircraft order to Airbus and Boeing added to its problems.

The carrier is estimated to have incurred a loss of $1.16 billion last fiscal year and is expected to incur losses for a few more years.
(Source:www.cargonewsasia.com)