Govt can't keep pumping money into Air India, says Ajit Singh

New Delhi: Civil Aviation Minister Ajit Singh today hit out at the cash-strapped national carrier Air India, saying it "will have to pull up its socks" as the government "can't keep pumping money" into the ailing airline. Air India reported net losses of Rs 20,320 crore from April 2007 to March 2011.

Speaking to reporters after laying the foundation stone for installing a third ATC tower at the Indira Gandhi International Airport in Delhi, the minister added that while it is clear that almost all airlines in the country are going through financial stress, no bailout would be given to private aviation companies. He said private airlines will have to come out with workable business plans and then seek loans from banks.

When asked about reports that the government was exploring options to allow FDI in aviation sector, the minister said that a Group of Ministers (GoM) will soon meet to decide on allowing foreign entities to pick up stakes in the airline sector in the country. "Finally, the Cabinet will take the decision. The Committee of Secretaries has already recommended raising the FDI limits in the sector," he said. (With PTI Inputs)