AI looking for new routes, says RaviAugust 20th, 2011 - 5:11 pm ICT by IANS
New Delhi, Aug 20 (IANS) National carrier Air India will operate flights on new routes as and when an opportunity arrives, the government said Saturday.
“We will take a decision on the new routes when the opportunity comes,” Civil Aviation Minister Vayalar Ravi told reporters on the sidelines of an industry event here.
The action on the airline’s turnaround and financial restructure plan would be taken after the sub-committee formed to review the plans, submits its report to the group of ministers (GoM) headed by Finance Minister Pranab Mukherjee, according to Ravi.
The GoM would meet in mid-september, he said.
Recently the GoM extended the airline’s credit limit to buy oil from the state-run oil marketing companies (OMCs) by two to three months.
“Now instead of cash and carry, Air India has been given two to three months credit extension by OMCs,” Ravi had told reporters after a meeting here of the GoM.
Ravi had added that the assurance for extending the credit limit to buy jet fuel from the OMCs was given by Petroleum Minister S. Jaipal Reddy.
The state-run OMCs had put the flag carrier on a cash and carry basis - which basically means that the airline was required to pay whenever it bought fuel from these companies.
Currently, the airline owes Rs.2,300 crore to the OMCs. It buys Rs.17 crore of fuel daily from them.
The company’s inability to pay the dues and rising jet fuel prices had forced OMCs to cut fuel supply to the airline in May end, forcing Air India and its low-cost international subsidiary Air India Express to cancel 147 flights from May 27 to June 2.
The company incurred losses worth Rs.10 crore at that time.
Currently Air India’s cumulative losses amount to Rs.22,165 crore, apart from a Rs.22,000 crore debt-burden to buy new aircraft.
- Air India's fuel credit limit extended: Ravi - Aug 18, 2011
- GoM meet on Air India Friday - Oct 27, 2011
- PM to meet airline chiefs Saturday (Lead) - Nov 25, 2011
- Government mulls more funds to keep Air India flying - Sep 19, 2011
- Air India owes Rs.2,310 crore to oil firms - Nov 23, 2011
- Government notifies direct fuel import by airlines - Feb 22, 2012
- Oil firms halt, resume fuel supplies to Air India - Feb 02, 2012
- Government rolls out plan to help domestic airlines (Roundup) - Feb 07, 2012
- GoM on Air India refers equity infusion to cabinet - Oct 28, 2011
- Oil firms increase jet fuel price by 3.70 percent - Nov 30, 2011
- Airlines should tie-up with suppliers to import jet fuel - Feb 16, 2012
- Air India to import jet fuel directly - Jun 07, 2012
- Air India board to meet Tuesday - Nov 29, 2011
- PM holds discussions with private airline chiefs - Nov 26, 2011
- Air India may slash routes to reduce losses - Aug 26, 2011
Tags: air india, air india express, carrier air, civil aviation, crore, debt burden, finance minister, flag carrier, fuel supply, international subsidiary, jaipal reddy, jet fuel prices, marketing companies, national carrier, new aircraft, omcs, pranab mukherjee, restructure, sidelines, vayalar ravi