Air India gets Rs 1,200 cr

Our Bureau New Delhi | Updated on February 28, 2011 Published on February 28, 2011

The State-owned airline Air India has been provided Rs 1,200 crore by the Finance Minister, Mr Pranab Mukherjee, in the Union Budget 2011-12.

The airline, which had earlier received Rs 800 crore and Rs 1,200 crore in two tranches from the Government, was expecting about Rs 2,000 crore in Budget 2011-12.

The Budget proposes an outlay of Rs 5,749 crore, of which Rs 1,200 crore is through budgetary support and the rest through resource mobilisation by the airline.

While agreeing to provide financial assistance, the Government has asked the airline to look at ways of reducing its losses.

The decision to provide budgetary allocation to Air India came on the day the airline's first Chief Operating Officer, Capt Gustaf Baldauf, resigned. Capt Baldauf had been handpicked to lead the airline's turnaround plan.

The State-owned airport developer, Airports Authority of India (AAI), has been provided a budgetary support of Rs 32 crore and the helicopter operator, Pawan Hans has been provided Rs 3 crore.

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Published on February 28, 2011
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