No Blank cheque to Air India: Praful Patel

New Delhi, June 24: PM Manmohan Singh is ready to extend full support to the ailing national carrier Air India on the condition that it cuts its cost and restructures its organisation, Civil Aviation Minister Praful Patel said on Wednesday.

“The Prime Minister was sympathetic. But he has asked to plan out the strategy, cost cuts, judicious use of resources and restructuring of Air India,” Patel said.

Amidst speculation over the bailout package to Air India, Patel said the government supported the national carrier but refused to divulge the amount of bailout.

Speaking at a press conference, Patel said that Air India is the national carrier and pride of the country so the government has assured full support to it in this time of crisis.

Ruling out ‘blank cheque books’ to Air India, Praful Patel said, “when government is going that extra mile to help the national carrier then it should also reciprocate in the similar fashion by performing.”

Refusing to divulge the amount of bailout, Praful Patel said, “unconditional support to Air India will not be easy.”

Putting the onus of performance on AI, he said that, “everybody including the staff and management of Air India should work towards making it successful.”

Expecting a restructuring from AI, Patel said, “AI will have to go for massive cost reduction in long term.”

Air India, which incurred a loss of Rs.4,000 crore last fiscal and is struggling to cope with a cash crunch, plans to ask for a Rs.10,000-crore (about $2 billion) bailout package from the central government, a senior official told IANS Tuesday.

Airline officials, who discussed the carrier’s financial problems with Patel Tuesday night, will meet top government officials again, seeking help.

“We are looking for at least Rs.10,000 crore bailout package. I am not sure if the government would agree on this,” said the Air India official, who did not want to be named.

–Agencies