NEW DELHI: As India's civil aviation minister, Praful Patel had staunchly fought against any move to declare Air India a sick company. But as the new minister for heavy industries and public enterprises, Patel may have to declare the national carrier a sick company.
Patel's ministry has notified a new criterion to identify state-run firms that are terminally sick. Air India may fall in this category if the new norms are applied to the debt-ridden carrier.
The new norms, notified by the department of public enterprises a day after Patel took charge, say a financially troubled state-run firm would be considered a 'turnaround ' case only if it had reported profits in three preceding financial years. Also, the profits should be without any grants from the government or a loan waiver from a financial institution.
But Air India reported losses in the past two fiscals, although it has succeeded in cutting these losses. The carrier posted a loss of Rs 7,189 crore in 2008-09 and Rs 5,551 crore in 2009-10. The carrier had a debt of around Rs 40,000 crore against an equity base of Rs 1,000 crore. The troubled carrier also got an equity infusion of Rs 1,200 crore in December 2010, as without this lifeline it would not have been able to pay wages beyond March 2011.
Air India, if declared sick, would be referred to the Board for Restructuring of Public Sector Enterprise, which falls under the department of public enterprises. The civil aviation ministry had in the past firmly resisted any move to bring the loss-making airline to the board, arguing that the company was not sick. An airline official said a company should be at least five years old to come under the purview of the board. "But the merged entity Nacil (National Aviation Company of India Ltd), which is Air India Ltd now, is only three-and-a-half years old since it was incorporated in 2007. This is what we even told the Cabinet.
complete Aviation Link Building Services | AeroSoft Corp |India | Asia -World's Best Aviation Directories
Best links | Airlines Links | Aviation links | World's Best links |AeroSoft Corp |Best Aviation KPO & Link Exchange | Best in India & Finest in Asia
Welcome To AeroSoft Corp| Best Aviation SEO Services | Jobs for Freshers | Jobs in Asia |Best In India | Finest In Asia | Professional pilot Jobs
Best Aviation SEO Services | Aviation SEO Jobs for Freshers | Aviation KPO Jobs in Asia |Best In India | Finest In Asia
World Class Travels Services | Best Tour Guide |
Best Tours & Travels Services | Best Travels Guide |
International Airlines Training Expo 2010
Aviation SEO Best in India & Finest in Asia
Jobs In Airlines | Airport Job | Aviation Industry Career
Best Pilot Training In Philippines BY Group of Indian Pilots
Your Gateway To Air Travel Industry | Best Training | Best Job
India's Best Asia's Finest Pilot Training Portal | Best Training | Best Job
Asia's Best Aviation B2B Market Place Of Pilot Training Academies In Asia
Find Best Aviation Training In Asia | Best Training | Best Job
To Start Your Career In Airlines | Best Training | Best Job
BE A PROFESSIONAL PILOT IN PHILIPPINES | Best Training | Best Job
Best Pilot Training Academy In Philippines
TMT Aviation School | Best Pilot Training school In Philippines
Aviation Acaemy Best In Gondia | Best Training | Best Job
Best Pilot Training | Best Training | Best Job
Careers In Airline Industry | Best Training | Best Job
Best Commercial Pilot Training In Philippines | Asia | Best Training | Best Job
Guidance For Pilot Training & Placement In India | Club For All Aviation Activities
World Class Pilot Career Placement In India | Best Training | Best Job
UK Link Exchange Link exchange World Class CPL PilotTraining in Asia | Best Training | Best Job