Bells Begin to Ring As Maharaja Shrinks Losses
It is a news which every proud India wanted to hear. Air India is back on the recovery path. As announced by the MoS, Mahesh Sharma, Air India is now in a position to cut down its losses by about 40 percent in this fiscal year. Last year, AI reported losses of about Rs 5859 crores and this year, this loss will shrink to Rs 3529 crores.
AI is ridden with high debt and the government announced the plans to revive it in 2012 when it earmarked about Rs 30000 for it to be spent over a 9 year period. Air India plans to issue tax-free bonds to the tune of Rs 10000 crores so as to reduce the debt burden by infusing equity capital. However, it is yet to get the Government Guarantee to back it up.