Civil Aviation Minister Ajit singh said, the approval by the Cabinet Commitee on Economic Affairs, of the Turn Around Plan (TAP) and Financial Restructuring Plan (FRP) for the Air India will enable the Public Carrier in getting an equity support of 6750 crore rupees. Briefing the media in New Delhi, he said Air India will also gain government guarantee for repayment of its Principal amount and payment of interest on the non-convertible debentures of 7,400 crore rupees proposed to be issued to financial institutions, banks, LIC and EPFO, etc. and used to repay part of working capital loans. He said, Air India will also be able to gain equity for cash deficit support of 4,552 crore rupees till 2021. He said the Airline will be able to raise equity for the already guaranteed aircraft loan of 18,929 crore rupees till 2021. The Minister said, the banks have also approved conversion of Air India's short-term working capital loan of 11,000 crore rupees into long term loan.

The government has also approved operationalisation of Air India Engineering Services Limited (AIESL) and Air India Air Transport Services Limited (AIATSL) as new Subsidiary companies of Air India. Mr. Ajit Singh said this would help hive off Maintenance, Repair and Overhaul (MRO) business of AIESL and also to tap the potential of US 1.5 billion dollars MRO business in the Asia Pacific Region. He said the Justice Dharmadhikari commitee recommendations had also recommended this measure. Air India will provide the required equity for the capital expenditure to the extent of 375 crore rupees over a period of three years. This would be based on equity support received by it from the Centre as part of Air India Financial Restructuring plan. The company is projected to be a profit making company from 2017-18. About 7000 employees of Air India will migrate to this new subsidiary company.

The Minister also informed the government has decided to operationalise Air India Transport Services as a new Subsidiary of Air India to hive off Ground Handling Business of Air India in order to develop it as a seperate profit centre. Air India will provide the required equity for capital expenditure to the extent of 393 crore rupees over a span of 12 years. This new subsidiary is projected to make a profit from the current financial year itself.