Air India: Good money after bad

Given that Air India's management was asking for a R30,000-40,000 crore bailout, it was always obvious the R800 crore or the R1,200 crore doses of equity infusion the government was doling out were neither here nor there. Once Air India had ordered, or was asked to order, $11 bn worth of airplanes, it was clear its R145 crore equity was completely inadequate to service the debt—even if a Singapore Airlines was running it, a $11bn debt on a R145 crore equity is unserviceable. It was equally obvious that, with 27,000 staffers, no one could turn the airline around.

Read Full Story>>