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Civil aviation ministry seeks bailout package for IA
In a bid to face the financial onslaught mainly posed by a hike in the cost of insurance cover, civil aviation ministry has sought a bailout package for Indian Airlines from the government by asking it to release Rs 325 crore that was sanctioned by the Union Cabinet before the disinvestment process began.
In a bid to face the financial onslaught mainly posed by a hike in the cost of insurance cover, civil aviation ministry has sought a bailout package for Indian Airlines from the government by asking it to release Rs 325 crore that was sanctioned by the Union Cabinet before the disinvestment process began.
“We have already written to the finance minister in this regard. He (Yashwant Sinha) is keen to help and we have to strengthen Indian Airlines, Civil aviation minister Shahnawaz Hussain said on Wednesday.
He said the matter may be taken up before the Union Cabinet.
Asked whether similar pleas of the private airlines would also be taken care of, Hussain said he had received representations from Jet Airways and Sahara. “I will place their concerns at the appropriate fora .... Before the finance minister and, if need be, the Cabinet,” he added. Civil aviation secretary A H Jung has convened a meeting on Thursday to be attended by top officials of the ministry, the airlines and others to review the situation and take a decision.
Meanwhile, at a meeting of PSU insurers and ministries of finance and civil aviation, the insurers have proposed an alternate way of extending fresh insurance cover for war risks to airline companies which are expected to be considered in the next meeting on October 5 in Mumbai. However, the airline companies and insurers are learnt to have disagreed on the insurance cover for war risk as insurers were reluctant to offer any further cover beyond the third party liability limits.
Bureau Report
He said the matter may be taken up before the Union Cabinet.
Asked whether similar pleas of the private airlines would also be taken care of, Hussain said he had received representations from Jet Airways and Sahara. “I will place their concerns at the appropriate fora .... Before the finance minister and, if need be, the Cabinet,” he added. Civil aviation secretary A H Jung has convened a meeting on Thursday to be attended by top officials of the ministry, the airlines and others to review the situation and take a decision.
Meanwhile, at a meeting of PSU insurers and ministries of finance and civil aviation, the insurers have proposed an alternate way of extending fresh insurance cover for war risks to airline companies which are expected to be considered in the next meeting on October 5 in Mumbai. However, the airline companies and insurers are learnt to have disagreed on the insurance cover for war risk as insurers were reluctant to offer any further cover beyond the third party liability limits.
Bureau Report