The national carrier Air India has been struggling for a while now, not having made a net profit for five years. However, the announcement has come that India is planning to change all that, by pouring money into the airline and hopefully therefore greatly improving its success. The plan is to provide Air India with a total of 300 billion rupees until the year 2020. This is the equivalent of $5.85 billion and will ensure that the airline has a huge chance of getting back on track.
This decision comes as part of India’s plan to improve the finances all round with regards to the national carrier, and to turn its fortunes around. This will be good news for those who use Air India, for trips with their partypoker friends or as a way of travelling to visit family. The financial aid plan includes a complete reworking of debt, as well as moving the ground-handling operations and the airline’s aircraft maintenance into two units. These announcements come from Ajit Singh, the Civil Aviation Minister who spoke at a news conference recently. He also announced that Air India have organised a delivery from Boeing Co., of 27 Dreamliner planes.
This new plan of aid for Air India comes on the back of some difficult years for the national carrier. India as a nation have been facing a battle with high fuel costs and they have been unable to raise fares due to stiff competition. In addition to this, a few years ago the airline ordered hundreds of planes in the hopes that there would be a rapid rise in air travel. They incurred heavy debts to facilitate this, and then the global economy slowed in 2008 which added to their problems. Hopefully these new plans will help the airline to get back on track, and it will be interesting to see how it all pans out.