India’s Cabinet Committee On Economic Affairs (CCEA) reportedly denied a second equity infusion of INR1,200 crore (USD270 million) for Air India on the grounds that the carrier failed to meet certain targets including revenue generation and cost cuts (Live Mint, 27-Oct-2010). The carrier received an equity infusion of INR800 crore (USD180 million) from the Government in the last fiscal. Air India requires the equity infusion for it’s cash flow as well as to raise more capital that would help it pay back some of its INR18,000 crore (USD4 billion) of debt.
Cabinet committee denies second equity infusion for Air India
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CAPA India Aviation Outlook 2017/18: Surging traffic but infrastructure constraints become critical
India’s status as the fastest growing aviation market in the world creates tremendous opportunities. But risks are also heightened as the inadequacy of India’s infrastructure planning, a fast emerging shortage of skills, flawed policy initiatives, and weak regulatory oversight threaten to become major stumbling blocks. The potential is enormous; but unless government bites the bullet, it will be seriously constrained.
This report is a short extract from CAPA's comprehensive 200-page India Aviation Outlook Report FY2017/18, to be released in Feb-2017 at the CAPA India Aviation Summit. The Outlook includes CAPA's projections for traffic, capacity, yields and earnings and presents fleet induction plans, detailed operating and financial analysis and risk assessments of each Indian airline and airport operator. The report also includes analysis of policy and regulatory issues.