Govt to bail out Air India, but conditions apply

Posted By: Staff
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New Delhi, Jun 25: The government has promised to provide bailout package to Air India provided it steps up and makes changes. Aviation Minister Praful Patel told the struggling airline company, after meeting with the Prime Minister, Manmohan Singh, that the money from the government will only be available with 'conditions apply' tag.

"Air india will have to rise to the occasion. The government"s support will be there but it will come with condition that Air India must shape up, become leaner and trimmer and put best foot forward," Patel said.

The minister also directed the airlines to give in the restructing plan within a month to the committee of secretaries headed by the Cabinet Secretary for a review.

This means that the Air India will have to take steps like cutting down on workforce through VRS, hiring professionals and phasing out old aircrafts.

Noting that not only Air India but the whole Aviation industry is in need of help, Patel said, "We have requested government to not only look at Air India, but also at the sector as a whole and confidence building measures are needed. Sales tax on ATF needs to be looked at comprehensively once again."

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