Four independent directors of Air India today discussed the airline’s financial position with a top official in the Prime Minister’s Office (PMO), with the government planning to infuse Rs 1,200 crore as additional equity into it.
The meeting with T K A Nair, principal secretary to Prime Minister Manmohan Singh, came amid indications that the Cabinet Committee on Economic Affairs would take up the equity infusion issue in the next few weeks. A Cabinet note on equity infusion has already been circulated by the civil aviation ministry.
The independent directors who met Nair were Anand Mahindra, vice-chairman and managing director of Mahindra Group; Air Chief Marshal (retd) Fali H Major; Amit Mitra, secretary general of FICCI (Federation of Indian Chambers of Commerce and Industry); and Yusuffali MA, managing director of Dubai-based Emke Group.
Issues like Air India’s financial position, debt situation and human resources are understood to have come up for discussion at the meeting. However, sources in the civil aviation ministry said the visit was a courtesy call and had nothing to do with the ministry.
The meeting came days after Civil Aviation Minister Praful Patel said Air India may get RBI approval for its debt restructuring by November. The airline has a debt of around Rs 18,000 crore.
With a renewed surge in air traffic, Air India has improved its finances significantly in terms of revenue and yield. It has also enhanced savings on fuel by almost Rs 350 crore and returned 16 leased aircraft.