Govt extends support to AI, but says no blank cheque

Prime Minister Manmohan Singh on Wednesday assured Air India that the government would put its entire weight behind it but with a condition that airline should undertake a full restructuring and shape up by becoming leaner and trimmer.

Civil Aviation Minister Praful Patel, who met Singh on Wednesday and put forward a case for government bailout, said Air India has been asked to give its restructuring plans at the earliest before a committee of secretaries, headed by the Cabinet Secretary.

"The Prime Minister has said that the entire weight of the government is behind Air India. It is a national carrier and it is our pride. But there is conditionality that Air India must put its best foot forward. The employees must realise that there is a problem and it is a cumulative problem," Patel said.

He said that Air India would require a lot restructuring from within both organisationally, financially and manpower wise. Until and unless serious steps are taken to improve the functioning and the financial viability, it would be difficult for the government to continue supporting the airliner.

The minister said no figures have been given for the bailout and all media reports in this regard were hypothetical and may be based on some sectional views of departments. But he also said bailout did not mean endless cheques being written by government in support of Air India.