Air India still flying thanks to bailout
Robert Joneshe government of India has planning to help maintain the ailing Air India, the country’s national carrier, flying with a backing of more than £689m ($1.1bn).
Aviation Minister Praful Patel said the large injection of money would be contributed in phases. But he added that the financial aid is conditional to a restructuration of the airline.
Air India will have to increase its revenues by reducing its expenditures of a total £407m ($650m) during a period of two years, added the minister.
The national carrier posted a $875m loss for the fiscal year ending in March.
Lat September, hundreds of pilots at Air India performed strike actions as a mark of protest against the airline’s plan to reduce pay incentives.
The strike was eventually terminated when Mr Patel explained the grievances would be discussed. He said that the likelihood of wage cuts were only one option considered by the airline as a means to reduce costs.
Mr Patel said he consulted with Air India employee unions to consider further cost-cutting options.
He said at a news conference that the union representatives understood the difficult financial conditions the carrier had to navigate through and were aware of the issues.
Air India staff demonstrated the will to cooperate with the management in order to find a road out of the current financial crisis.
Mr Patel said he carrier has already showed signs of improvement as air traffic demonstrated a positive trend during the last month.
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Filed under Business & Finance, Travel News, World News