Cabinet OKs 12 billion rupee equity infusion into Air India
NEW DELHI |
NEW DELHI (Reuters) – The cabinet approved on Thursday an equity infusion of 12 billion rupees ($270 million) into ailing state-run carrier Air India, a government statement said, giving a new lease of life to an airline that has not posted a profit since 2007.
Air India has estimated losses of 69.94 billion rupees in the year to March 2011, and is in talks with banks to restructure $4 billion of working capital debt.
It is also in the midst of implementing a turnaround plan which would focus on a hub-and-spoke route model, cut costs by redeploying staff and offload non-core real estate.
($1=44.5 rupees)
(Reporting by Nigam Prusty; Editing by Sunil Nair, John Stonestreet)
Article source: http://feeds.reuters.com/~r/reuters/INbusinessNews/~3/_Siv8ReU6nA/idINIndia-58621920110804
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