Business

Govt To Infuse Rs 2,100 Crore Into Loss Making Air India

JAVED SAIFI | 0
3879
| September 4 , 2018 , 16:45 IST

Demolishing the disinvestment plan, the government is all set to infuse around Rs 2,100 crores in the loss-making Air India.

The national carrier will get this amount in the form of government guaranteed borrowings as civil aviation secretary Rajiv Nayan Choubey announced on Tuesday.

Similarly, during one of the previous sessions of Parliament, the government had obtained the approval for infusing Rs 980 crore equity in the debt-ridden Air India that has reached to more than Rs. 27,000 crore so far.

The move was implemented to bring in the fresh equity into Air India when banks and jet-leasing firms had issued the first reminder to clear the outstanding dues.

Also Read: 40% Airbus A321 Planes Of Loss-Making Air India Grounded Due To Lack Of Spares: Report

As Air India is fighting for survival on an average Air India gets Rs 4,600-crore annual bailout package every year but only serves a 12.4 percent of the domestic passenger traffic and 16.55 percent passenger traffic on international routes.

Air India has a 17 percent market share on international routes and 2,500 international routes slots per week across 43 countries.

Previously on June 22, Air India launched its all-new revamped services with 'Maharaja Direct' offering first-class and business-class options to give a great customer experience and boost to revenue.

The all-new revamped service include westernized uniforms for cabin crew members, new upholstery, noise cancellation headphones and improved drinking water, delicious cuisines and refreshing option for beverages both alcoholic and non-alcoholic.

The airline that employees around 27,000 staff had a debt worth Rs 49,100 crores as of March 2017.