Financially ailing Air India to be restructured by government

AIR INDIA, after failing to return to the black through restructuring, is facing a fate to be reorganised by the Board for Reconstruction of Public Sector Enterprises (BRPSE), reports India's Economic Times.

The airline suffered a net loss of INR5.5 trillion (US$1.2 billion) in 2009-10. With an addition to INR7.1 trillion losses in 2008-09, the airline has accumulated a debt of around INR15 trillion.

"Financial restructuring has been found illusionary so far and the company has not been able to turn around," said a senior government official said. "We are planning to take up this issue at the appropriate level. Otherwise there is no use of bodies such as BRPSE."

A salvage solution for Air India is being developed and will be sent to BRPSE, according to Heavy Industry Minister Vilasrao Deshmukh.
(Source:www.schednet.com)