Govt must pump in `1,777 cr more equity in AI: House panel
The government should make an additional Rs 1,777 crore equity infusion into Air India as it is on the path of recovery, a Parliamentary panel said on Tuesday.
Air India had requested an equity infusion of Rs 4,277 crore in the current financial year (2015-16) but the government has only provided an amount of Rs 2,500 crore in the Budget. The national carrier had sought the money in line with the recommendations of TAP/FRP (Turnaround Plan/Financial Restructuring Plan). “Since Air India is already on the path of recovery and preforming well, the government should provide Rs 1,777 crore which stands as a deficit in equity infusion without any cut during the course of the current financial year,” the Department-Related Parliamentary Standing Committee on Transport, Tourism and Culture said in a report. The report on Demands for Grants of the Civl Aviation Ministry was tabled in Parliament. Despite stiff competition from private carriers last year, the panel said Air India was in a position to achieve the stipulated parameters as per its TAP/FRP.
“The passenger load factor was almost 87 per cent during the last year and Air India was able to offer its services to 68 destinations with available aircraft,” it added. Further, the panel said continued government support in the form of equity infusion as well as a better synergy between employees and the management would help Air India to earn profits in the coming years.