Govt’s Rs 29,000 cr bailout plan for Air India

New Delhi, Nov 29 (UNI) The Government on Thursday announced Rs 29,000 crore bailout package for the the State-owned carrier Air India to bring the airline on the track. (See: Air India)

The national carrier has currently been facing an accumulated loan of Rs 55,000 crore.
Besides it has also to pay certain liabilities such as airport charges, repair and maintenance fees and aircraft fuel charges, Union Civil Aviation Ministry Secretary Rajiv Nayan Choubey told reporters here.

He said the government has decided to give the airline money as a debt.
And for the purpose, the government has incorporated a special purpose vehicle with the name of “Air India Asset Holding Company” in which the loan amount would be transferred.