According to a recent Press Trust of India (PTI) report, State-owned air carrier Air India is expected to post half of the domestic aviation industry's losses this fiscal, at Rs 3,000 crore.
Praful Patel, Civil Aviation Minister yesterday said, "Air India's losses would be around Rs 3,000 crore in FY 2008-2009.The aviation industry is expected to post losses of Rs 6,000 crore in the current financial year largely because of high oil prices.”
Patel further informed that high oil prices were not India-centric, but airlines across the globe were facing the pressure. The Centre is planning a capital infusion of Rs 1,500 crore to support the public sector airline."We are examining the proposal," said Patel. Currently, the Government's equity in the loss-making national carrier is Rs 150 crore. Patel concluded by ruling out possibility of an initial public offer (IPO) for Air India in the prevailing volatile market conditions by saying, "No one will go for an IPO in the present market (conditions). |