Page last updated at 06:54 GMT, Friday, 19 February 2010

Air India government bail-out plan approved

India's Civil Aviation minister Praful Patel
The airline showed a massive loss last financial year

The Indian government has approved an injection of $173m (£110m) for the ailing national carrier Air India.

The instalment is part of an expected $432m ($277m) financial aid package for the company, which has reported massive losses in recent years.

The money would be paid out in two phases, officials said.

Last year, the airline agreed to restructure the company, cut costs amounting to £407m over two years and to boost its revenues.

The airline reported a loss of $875m in the fiscal year ending in March 2009.

Air India was told by the Indian government to cut costs dramatically as a condition of receiving the state aid.

Management plans to cut pay incentives resulted in huge protests and hundreds of Air India pilots went on strike in September.

The strikes were called off after the government intervened.

Print Sponsor

Bailout to keep Air India flying
14 Oct 09 |  South Asia
Air India speaks on cabin scuffle
06 Oct 09 |  South Asia
Air India pilots call off protest
30 Sep 09 |  South Asia

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Sign in

BBC navigation

Copyright © 2020 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific