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Aviation ministry asks for additional equity infusion for Air India

11-Oct-2010 10:50 AM

India’s Ministry of Civil Aviation plans to ask the Indian Government for another INR2,000 crore equity infusion for Air India on top of an already approved INR1,200 (USD450.5 million) to pay off the carrier’s debt (Times of India, 11-Oct-2010). The carrier has an equity base of INR145 crore (USD32.6 million) along with accumulated losses of INR14,000 crore (USD3.1 billion) over the past four fiscals; working capital loan of INR18,000 crore (USD4.1 billion) and aircraft orders of more than INR50,000 crore (USD11.2 billion). Air India requires INR3,000 crore to INR4,000 crore (USD675.8-901.1 million) annually to pay off its debts.