'AI may require over $1b to stay afloat'
Friday, 15 January 2010
MUMBAI, Jan 14 (PTI): National carrier Air India (AI), which is awaiting a Rs 8-billion equity infusion from the government, may require over one billion dollar to overcome its financial woes, a global aviation research firm has said.
Estimating that AI's total losses this fiscal would mount to $800 million in 12 months ending March 31, consultancy firm Centre for Asia Pacific Aviation (CAPA) has said that the airline would require at least one billion dollar for rebuilding itself.
Terming 2010 as the Year of Asian Airlines' bailout, it said AI expected to receive its first tranche of Rs 20 billion ($340 million) by March this year as its enters the initial years of its challenging restructuring.
The restructuring process would target rationalisation of its fleet and route network, among other things, to reduce cost-base and provide it with a more stable footing.
Estimating that AI's total losses this fiscal would mount to $800 million in 12 months ending March 31, consultancy firm Centre for Asia Pacific Aviation (CAPA) has said that the airline would require at least one billion dollar for rebuilding itself.
Terming 2010 as the Year of Asian Airlines' bailout, it said AI expected to receive its first tranche of Rs 20 billion ($340 million) by March this year as its enters the initial years of its challenging restructuring.
The restructuring process would target rationalisation of its fleet and route network, among other things, to reduce cost-base and provide it with a more stable footing.