TOP MANAGEMENT MEETS MINISTER
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Air India in crisis, seeks Rs 10,000-cr bailout
Published on Tue, Jun 23, 2009 at 16:08, Updated on Tue, Jun 23, 2009 at 17:46 in Business section
Tags: Air India, Air India Salaries , New Delhi
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New Delhi: National carrier Air India has sought a Rs 10,000-crore bailout from the Union government.
Air India’s top management is currently in a closed-door meeting with Civil Aviation Minister Praful Patel in New Delhi.
The officials are apprising Patel how much money they would need to get through the crisis to survive the cash crunch.
But the airline is unlikely to get the amount, as the Government doesn't want to set a precedent for other sick PSUs to come knocking on its door.
Air India is also likely to present the minister its cost cutting plans. It's expected to justify plans to delay the June salaries of its employees by 15 days.
The carrier is struggling with daily losses of over Rs 15 crore and its total losses have amounted to Rs 4,000 crore annually.
Arvind Jadhav, the company’s CMD, on Saturday wrote a letter to all employees and said the airline is fighting for its “survival”.
"This is an hour of crisis. This is a fight for survival. The survival of our own airline,” said Jadhav.
Employees of the carrier have called for an indefinite strike from July 1 if the management delays their salaries. The airline has urged its senior management to forego their June salaries.
According to the International Air Transport Association (IATA), the global aviation industry is expected to lose about $9 billion this year.
The Centre for Asia Pacific Aviation (CAPA) says the Indian aviation industry is likely to incur around $2-billion losses this year. Two major domestic air-carriers, Kingfisher Airlines and Jet Airways have reduced jobs and slashed salaries.
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yes my freind lalu did turn railways into making profit but at the expense of services to the public....if u
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Ever since the "global recession" began, many Indian companies too came under severe crisis. Many private and corporate companies took
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i think that it is not fair that the taxpayers hard earned money is given as a bailout package
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This NON Friendly zero customer Service has no business to be flying. I have not had even one instance of
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Well said.The current situation is a result of mismanagement over the years. Thorough investigation should be done to
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