Govt to bail out Air India

Mumbai: The government has agreed to inject funds into the ailing national carrier Air India, newspapers reported on Sunday, citing government sources.

Air India's accumulated loss was about Rs 7200 crore ($1.5 billion) at the end of March, Aviation Minister Praful Patel told parliament last month, adding the airline needed government assistance.

The Financial Express said Air India could get Rs 2500 crore ($514 million) to Rs 3000 crore of equity. The Economic Times put the figure at Rs 5000 crore to be linked to performance over the next three years.

The decision was taken at a meeting of a government committee of secretaries on Saturday, the two papers said.

Air India has been hit by a slowdown in the economy and high cost of operations.

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