Financial Times FT.com

Cash ‘infusion’ plan for Air India

By Joe Leahy in Mumbai

Published: October 14 2009 19:00 | Last updated: October 14 2009 19:00

India’s government is considering a Rs50bn ($1bn) injection of equity in tranches into loss-making Air India as part of a rescue plan to be put before cabinet, aviation minister Praful Patel said on Wednesday.

He told reporters that any government support would be conditional on cost-cutting measures at the state-owned airline, known as the Maharaja, as well as steps to boost revenues.

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