GoM may slash Air India’s Dreamliner order to less than half
28 Oct 2011
New Delhi: Ahead of a Group of Ministers (GoM) meet today to settle a restructuring package for ailing state-owned carrier Air India, reports suggest that the carrier's board has recommended that it opt to purchase only 12 of the total 27 Boeing 787 Dreamliner planes it had ordered in 2005.
According to reports, the board has also said the planes could be bought in phases over three years.
A group of ministers, led by finance minister Pranab Mukherjee, will meet today to decide on the aircraft purchase order and a financial restructuring package for the near-bankrupt flag carrier.
The GoM meet was pushed ahead by a day, from Thursday.
Reports, citing unnamed airline officials, say the GoM would primarily look into the airline's performance as well as consider granting additional equity to the flag carrier. The grant, reports suggest, may be substantial.
"The GoM would also consider our proposal of converting some of our short-term loans into long-term loans, thereby allowing us to save Rs900-1,000 crore in interest payments per annum," the airline official said.
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