India's government is finalising a revival package for Air India that will include financial assistance and a strategy aimed at making it a more competitive carrier.
"The revival package is in its final stages right now and as part of that revival package, we are also looking at what we should do financially for Air India," minister of state for civil aviation Jayant Sinha said on 1 October.
This includes financial support for the cash-strapped airline, along with "a series of reforms to ensure that Air India is a professionally-managed company". Sinha added that the plan also includes implementing "a strategy that will Air India in a competitive, successful airline", as well as a "series of measures to improve the conditions and terms" of its workforce.
He did not provide further details on the four focus areas of the plan, but added that the government is looking at finalise it "as soon as possible".
The Star Alliance carrier has been saddled with over Rs50 billion ($750 million) worth of debt, and an attempt to sell a 76% stake in the airline earlier this year attracted no bidders.
Last month, Air India sought a short term loan of up to Rs5 billion to meet urgent working capital requirements. That followed a similar tender issued in June seeking a Rs10 billion working capital finance facility.
Source: Cirium Dashboard