Air India turns to Narendra Modi govt for more help; Centre says meet targets

• Posted in Aviation
• on August 12, 2016
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The government has assured Air India of financial and other assistance urging the carrier to meet the targets spelt out in the new turnaround plan. The state-owned airline must improve on time performance (OTP), passenger load factor (PLF), capacity growth and monetise assets.
Air India chairman and managing director Aswani Lohani is understood to have asked the government to waive the guarantee fee charged to secure the airline’s loans and bonds. The airline also wants the government to provide for the shortfall in equity, support in the recovery of the dues for services provided to the VIPs and conversion of the long-term loans into equity.
The carrier is also believed to have requested for a rationalisation of the cost structure at the airports. Top government officials in an oversight committee meeting with executives of the state-run airline Air India took stock of the financial recovery and operational improvement of the airline under the existing turn around plan (TAP). Jodie Meeks Jersey

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