New Delhi:
A Group of Ministers (GoM) headed by Finance Minister Pranab Mukherjee will meet today to look at the turnaround plan for Air India, in particular at an additional equity infusion of Rs 6000 crore. Most importantly, the GoM wil also discuss whether the airline will go ahead with the purchase of the 27 Boeing 787s (the Dreamliner).
An order of 27 aircrafts worth $4 billion (Rs 20,000 crore) was placed in 2005. The group today will decide whether they will go ahead with the full order, reduce the number of aircraft purchased or defer it altogether.
In the last meeting in September, Air India had battled in favour of these Boeing 787s saying they were crucial for the survival of the national carrier.
The airline is in troubled waters when it comes to finances. Air India's liabilities from loans and vendor payments amount to Rs 48,000 crore, its accumulated losses are at Rs 20,000 crore, the working capital loan is at Rs 22,000 crore and it has got a whopping equity infusion so far amounting to Rs 2000 crore.
The Comptroller and Auditor General or CAG criticised the airline's purchase of 111 planes worth Rs 50,000 crore.
And in the middle of this, Air India plans to use the new Boeing 787s for middle-haul routes.
The manufacturer, Boeing, says the Dreamliner need 20 per cent less fuel and 26 per cent less maintenance cost.