Air India to receive first tranche of Rs8 billion equity by Dec: Patel

Belgaum (Karnataka), Nov. 14 (ANI): Cash-strapped carrier Air India will be receiving its first tranche of equity of eight billion rupees by December, Civil Aviation Minister Praful Patel said on Saturday.

"We are looking at equity infusion of 8 billions to Air India in the next two months. That would be initial tranche and as we have said we would be monitoring the monthly progress before we move into the next tranche of giving equity support," Patel said.

He added that a decision would be taken on relaxing the foreign direct investment (FDI) sector, after assessing the needs of the industry.

In October, Patel had said that government would back Air India with up to 50 billion rupees if the carrier made the same amount through cost cuts and other measures, a proposal, which was protested by unions.

The airline declared a loss of billion dollars in the financial year March 2009, while in September, around 400 Air India executive pilots went on mass sick leave for four days to protest pay cuts, resulting in more than 200 flights being cancelled and the airline losing more than one billion rupees. (ANI)