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The Union Minister for Civil Aviation, Mr Vayalar Ravi, today said that the group of Ministers will take a call on further infusion of equity into crisis-ridden national carrier Air India in the next one-two weeks.
Speaking on the sidelines of the Regional Centenary Celebrations of Civil Aviation in India, he hoped that Air India would be on a turnaround mode in about six month’s time. Besides looking to the Government for financial help, the state-owned airline should also approach banks directly, he added. “I believe that within six months, it can come to a position, probably not a profitable position, but where the airline can stand on its feet,” he said.
Air India had received Rs 2,000-crore equity infusion in calendar year 2010 from the government, including Rs 800 crore in fiscal year ended March 31, 2010, and Rs 1,200 crore approved during fiscal 2010-11.
Commenting on the impact of the recent fuel hike on passenger fares, he said that all states should follow the Kerala example and reduce the sales tax on aviation turbine fuel (ATF) to offset frequent oil price hikes. ATF prices are highest in India compared to some of the countries in Asia, and the high fuel prices are a huge burden on carriers, added Mr Ravi.
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