October 15, 2009 11:09 AM

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Govt. to infuse Rs 3,000 crore bailout plan for Air India

The government is to infuse additional equity to bailout Air India. It has charted a revamp roadmap to cut costs by Rs 3,000 crore and increase revenue by Rs 2,000 annually. Talking to reporter in Mumbai, Civil Aviation Minister Praful Patel said a note for Cabinet Committee on Economic Affairs in this regard is being prepared and shall be submitted in the next few days itself .Mr Patel said, Air India, which is faced with losses estimated at over Rs 7,200 crore this year, has undertaken a major revamp plan parts of which have already come into effect, He said this will definitely in a couple of years lead Air India on the path of recovery.Patel said that the national carrier is also looking at retiring its large fleet of aircraft, which is already taking place and will continue to be done in the next 12-24 months. The Civil Aviation Minister said the government is also supporting the national carrier to restructure its high-cost debt into low-cost debt.Indicating that the airline willl go in for sale and lease-back policy, which is being pursued by its private competitors, Patel said the airline has decided to defer delivery of six Boeing 777 aircraft by two years.Describing his meeting with representatives of 14 Air India staff unions as positive, Patel said the unions are very understanding and are aware of the problems. He said the management and the employees' unions will have to come together to turnaround the company.

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