This Article is From Jun 25, 2009

Govt aid to Air India comes with a rider

Govt aid to Air India comes with a rider

AFP image

New Delhi:

The financial crisis has hit Air India hard and now it's asking for a bailout. The government says it will help Air India but it first needs to shape up.

Turbulent times for Air India but now its owner, the government, has promised to keep it flying high.

"The Prime Minister has said the airline is the pride of India. And the government is putting its weight behind Air India," said Praful Patel, Civil Aviation Minister.

But this promise comes with a rider: The government wants AI to shape up and submit a cost cutting and restructuring plan within one month.

"Air India needs to be leaner, trimmer. We can't keep giving it a blank cheque. The employees will have to rise to the occasion," Praful Patel added.

Sources say the PMO is not happy with the way the airline is run. Even its merger hasn't taken off as expected.

So, the message is clear: If Air India needs help it should first help itself.

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