Big bailout needed for Air India as losses mount

Air India confirmed in mid-Aug-08 that it would seek a minimum of INR20 billion (USD458 million) in fresh equity and soft loans from the Indian Government shortly, to fund its increasingly demanding working capital requirements. Chairman & Managing Director, Raghu Menon, stated, "we have not finalised any number [for government support] so far. But it could be more than INR2,000 crore (USD458 million)". He added, "fares have gone up due to [the] increase in jet fuel prices. We are cutting costs, but the real thing will be [a] fall in fuel prices".