Dubai: Air India Ltd. may receive 17 billion rupees ($382 million) from the government to help the state-owned carrier pay salaries and maintain services, according to a company official familiar with the matter.
The bailout includes 12 billion rupees earmarked for the airline in the federal government's annual budget and about 5 billion rupees the state owes the company for flying officials, the person said, asking not to be identified before a public announcement.
A ministers' panel will debate the fund injection next week after failing to decide on the issue at a meeting on Monday, civil aviation minister Vayalar Ravi told reporters in New Delhi, without elaborating.
Air India has already received 20 billion rupees of public funds since April 1, 2009, and is in talks with banks to revamp its debt. It has reported annual losses every year since its merger with state-owned Indian Airlines in 2007, according to government data.
