Air India to get ` 30,000cr 9- yr rescue package
Bulk of staff in 2 new units
Financially- troubled Air India will get a major boost with the government deciding Thursday to grant it a turnaround package, with a ` 30,000- crore equity infusion over nine years. It also decided to induct 27 Boeing 787 Dreamliners. As part of the plan to restructure the national carrier, the government decided to hive off its maintenance, repair and overhaul business and engineering services as two wholly- owned subsidiaries. With this, around 19,000 of the airline’s 28,000 employees will now be placed under the two new subsidiaries.
Civil aviation minister Ajit Singh said after a meeting of the Cabinet Committee of Economic Affairs, which was chaired by Prime Minister Manmohan Singh: “Under the approved turnaround
Cabinet to decide if foreign airlines can invest in India at next meet: Ajit
plan and financial restructuring plan, the airline will get upfront equity infusion of ` 6,750 crores.”
The airline has been allowed to issue government- guaranteed non- convertible debentures worth ` 7,400 crores to lenders like financial institutions, banks and EPFO. These debentures will be used to repay part of the airline’s working capital loans of around ` 21,200 crores. When asked if and when foreign airlines would be allowed to invest in Indian carriers, including Air India, the minister said a decision was likely at the Cabinet’s next meeting.
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