The Bankrupt Maharaja

For Air India, it's back to square one. After months of unsuccessful attempts at selling the ailing national carrier, the government decided to pump in additional money. The Civil Aviation Ministry has sought Parliament approval to inject some Rs 980 crore into AI in the current fiscal for a 10-year turnaround plan (TAP) beginning 2012. AI reportedly asked for Rs 2,121 crore equity infusion to pay vendors; it has already received some Rs 27,195 crore from its approved TAP kitty - Rs 30,000 crore. A corresponding improvement in performance could justify previous "bailouts". AI posted operating profits of Rs 105 crore in 2015/16 - and more operating profits in the subsequent years - after nearly 10 years of registering losses. But that's expected to change as market conditions turn unfavourable - elevated fuel prices, depreciating rupee, and rising competition.

Manu Kaushik