Thursday, December 29, 2011

Air India Board briefed on restructuring


Posted by- Neelam Mathews
Dec 29, 2011


The Air India Board met today in New Delhi and was was briefed on the progress made on the Financial Restructuring Plan of Air India. Following the meeting with the lenders on November 28, 2011, State Bank of India (SBI), as leader of the consortium has approached Reserve Bank of India for certain additional dispensations in the provisioning norms. A cabinet note is being moved by the Ministry of Civil Aviations for the purpose of equity infusion in Air India and for approving the Financial Restructuring Plan, says Air India.

The Board approved the rearrangement of authorized share capital by issue of preference shares worth Rs 7500 cr which are proposed to be allotted to the lenders of the working capital as part of the Financial Restructuring Plan.

The improvement in the key performance indicators for November 2011 included-
 Passenger revenue went up by 12.3%
Capacity in ASKM increased by 1.9%
Number of passengers carried increased by 7.7%
The load factor at domestic services was 74.9% and on international
services was 64.1%
The yield went up by 10%.

The appointment of Vinod Asthana as Managing Director of Hotel Corporation of India Ltd., was also approved by the Board.

1 comment:

  1. As part of Air India's restructuring, the government has decided to infuse Rs 4,000 crore as additional equity during the current fiscal. This would raise the airlines' equity base to Rs 7,345 crore.STC Technologies|STC Technologies

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