Air India needs Rs 4,500 cr bailout package

Air India would need a package of around Rs 4,500 cr to bring the national carrier out of crisis.

Air India would need a bailout package of around Rs 4,500 crore to bring the national carrier out of financial crisis,Civil Aviation Minister Praful Patel said in New Delhi.

“The Government needs to put in around Rs 2,500 crore of equity,which can be repaid in future once partial disinvestment takes place. You can look at another couple of thousand crore by way of soft loans,which is again repayable,” Patel told a TV channel.

On the proposition of eminent personalities such as Ratan Tata,N R Narayan Murthy and Sam Pitroda joining the Air India board of directors,he said,”Why not? Ultimately if such people are willing to contribute for a public cause,for bringing the national carrier back on track,I think it is a great thing.”

Explaining their role,Patel said “they would be independent directors”.

He said that the Government was still talking to some eminent personalities and would come out with the names of those who would be part of the AI board once it is finalised.

“Some of them have said yes but until I formalise the whole thing,I would not like to disclose their names,” the minister said.