Air India asked to prepare restructuring plan in 30 days:Patel

New Delhi, July 2 (PTI) Grappling with a severe financial
crunch, Air India has been asked to prepare a restructuring
plan in next 30 days, India's Civil Aviation Minister Praful
Patel said Thursday.

"The airline has been facing a financial crunch for the
past few years. The borrowings of Air India have risen steeply
from Rs 6,550 crore in November 2007 to Rs 15,241 crore in
June this year," Patel told the Lok Sabha (Lower House of
Indian Parliament).

In reply to a question, he said the borrowings have gone
up largely due to servicing of debt on account of purchase of
new aircraft and its operating losses which have compounded
due to the present economic recession and high oil prices last
year.

He later told reporters outside Parliament that the
government's support to Air India "cannot be taken for
granted" and it should prepare a restructuring plan in the
next 30 days. PTI ARC
rai
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