New Delhi, Feb 18 (IANS) The latest equity infusion of Rs.5,500 crore into Air India by the government will be used for meeting day-to-day expenses, an airline official said Tuesday.
“The fresh equity infusion will be utilised for day-to-day expenses and other capital requirements of the company,” the official told IANS.
“The infusion is part of the turnaround plan which is being adhered by the company. We are on track in completing all the parameters set for us under the turnaround plan and the equity infusion is an important part of it.”
According to the official, who did not wished to be named, the fresh equity infusion will help the airline in bridging the revenue shortfall.
The airline, which is expected to be EBIDTA (earnings before interest, taxes, depreciation, and amortization) positive by the end of this financial year, is likely to make losses in the tune of Rs.4,000 crore.
The interim budget 2014-15 presented by the Finance Minister P.Chidambaram to the Lok Sabha on Monday, proposed an equity infusion of Rs.5,500.10 crore for the airline.
The airline is also expected to repay banks some of its loans that it has accumulated on account of working capital and fleet acquisition.