Singapore Airlines to investment Rs 3,194.5 crore in Air India post-merger of Vistara
Singapore Airlines is set to make an additional investment of Rs 3,194.5 crore in Tata Group-owned Air India post-merger of Vistara in November.
A revival package for debt-ridden national carrier Air India has been nearly finalised and will be announced this month, said Civil Aviation Secretary R.N. Choubey on Wednesday.
He said there was no issue with regard to the package.
Choubey was talking to reporters after inaugurating an interim international departures terminal at the Hyderabad International Airport.
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He said the government was keeping a watch on the airline sector in general as airlines were not doing well for the last two quarters due to increase in oil prices and rupee depreciation.
The official said the government would extend all help to airlines. “We are working on various measures to support the airline sector in general.
“The intention is to bring down the cost of operations because leased rentals have gone up on account of depreciation of rupee and the fuel prices have also increased,” Choubey said.
To a query, he said Jet Airways had not asked for specific help from the government.
On Air India, he said the disinvestment move did not receive the required interest from prospective bidders.
“While we remain committed to disinvestment of Air India, that will be possible once macro economic conditions become favourable. The oil prices have to go down and rupee exchange rate has to improve.”
The official said the government by providing all support to Air India would ensure that it remains a viable entity.
“At the same time we expect Air India to improve its efficiency and operational capability,” he added.
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