Indian Minister for Civil Aviation, Praful Patel, announced the Indian Government will provide a USD265.1 million equity infusion to Air India by Jun-2010 in one transaction (The Economic Times, 10-May-2010). Mr Pate added the carrier will have to “focus on marketing” and its turnaround plan will “have to include that aspect”. Part of the equity infusion will be used to fund up to 15% of the pre-delivery payment to Boeing for its order of 27 B787s, which are expected to commence delivery in 2011.
Air India to receive USD265m equity infusion by Jun-2010
You may also be interested in the following articles...
Australia-India air travel market grows rapidly but SE Asian hubs hinder nonstop services
The Australia-India market has experienced rapid growth over the last three years, prompting Australia to lobby for more direct services. Visitor arrivals from India are up 50% since mid-2013, and total passenger traffic between the two countries is up approximately 30%.
Air India launched services to Melbourne and Sydney in 2013 but the Australia-India market is still dominated by Southeast Asian flag carriers. Singapore Airlines has been able to maintain a leading 41% share of the market. Malaysia Airlines also still carries more Australia-India passengers than Air India.
Attracting more nonstop flights from Air India, or the possible launch of nonstop flights to India by Australian carriers, will not be easy despite growing demand. Southeast Asia’s network airlines have a competitive advantage as they serve several gateways in both Australia and India. Southeast Asia’s growing medium/long haul LCCs have also started to compete in the Australia-India market and are well positioned to take a large share of the anticipated growth.