Air India needs a booster shot of Rs1,000 crore: Praful Patel
20 Sep 2008
Mumbai: Air India desperately needs a capital infusion of around Rs1,000 crore for its rejuvenation, according to the Union civil aviation minister Praful Patel.
Speaking to the media, the minister said that Air India was in urgent need of a capital infusion of upto Rs1,000 crore. He said that a proposal had been received by the government, and it will be reviewed in detail over the coming weeks.
Patel said that airlines suffering losses was now a universal phenomenon, and added that Air India was seeking soft loans to meet its current requirements.
He also said that he was in support of the move to import Air Turbine Fuel (ATF), saying that airlines need some relief for their fuel bills, as ATF in India is very expensive for various reasons. He said the taxation by both the central and state governments was very high. He said he supported airlines on the issue as it would ''help them reduce their operational costs''.
Patel also said that he shared the view of Karnataka chief minister B S Yediyurappa about the Bangalore International Airport. The Karnataka chief minister had called the airport shoddy. (See: New Bangalore airport shoddy: Yeddyurappa)
Patel said that he had talked to the Karnataka chief minister and that he shared his views since the airport did not meet the required capacity.
