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December 14, 2017

Debt ridden Air India will turnaround and fly by pumping in Rs.302.31 billion as equity in 4 years


Newsroom24x7 Network

New Delhi: For operational and financial turnaround of the debt ridden Air India, Government of India has approved a Turnaround Plan (TAP) and a Financial Restructuring Plan (FRP) that provide for equity infusion of Rs.302.31 billion up to 2021.

The equity infusion approved by the Govenrment will be subject to achievement of certain milestones.



In a written tabled in Parliament (Rajya Sabha) on Tuesday, Union Minister of State for Civil Aviation Jayant Sinha informed the House that Air India has made “substantial progress in both operational as well as financial areas as per TAP Milestones”. As a part of the turnaround strategy, the company, with the overall support of the government, has initiated a number of steps in order to cut costs and losses.

These steps are:

  • Route rationalization of erstwhile Air India (AI) & Indian Airlines (IA) route and elimination of route network involving parallel operations.
  • Rationalization of certain loss making routes.
  • Enhanced utilization of new fleet resulting in production of higher Available Seat Kilometers (ASKMs).

During the last three years, Air India has initiated a number of steps including various phase market initiatives. The steps include:

  • Introduction of New Routes.
  • Preferred seat selection on domestic and international routes.
  • Flash sale of seats to increase revenues and Passenger Load Factor (PLF).
  • To utilize unsold inventory/launching of airfare equivalent to Rajdhani IIAC fare on select sectors.
  • Dynamic pricing and introduction of Advance Purchase fare.
  • Various sales and Marketing Initiatives.


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