Air India to seek funds from govt

With recession eroding profits of the global airline industry, Indian national carrier Air India on Monday said it is taking a "hard look" at its operations and would submit a paper to the government for the revival of the airline.

"Like all other airlines, our yields are going down, we will be looking at every option, every action of Air India is under review," Air India CMD Arvind Jhadhav said on the sidelines of the International Air Transport Association's 65th AGM in Kuala Lumpur.

He said the airline was still working out the figures for a soft loan from the government, adding that the company may have to take drastic programmes to come out of the current situation.

"We are trying to do a reality check, every group has to give cost saving and revenue generation programmes," Jhadhav said.

Jhadhav felt that Air India had specific issues unique to the company. "Old aircraft, integration, over capacity, modernisation and global recession, within this the airline gets hit in all five while competitors don't have all of these," he said, adding "we are in a survival mode."

He felt that there were several charges which were beyond control like parking charges, landing costs, fuel and other costs.

Jhadhav admitted that integration was key to survival of the company and added that currently it was in a perilous position with losses and net worth getting eroded.