Air India may require over $1 bn bailout

Terming 2010 as the Year of Asian Airlines’ bailout,it said AI expected to receive its first tranche of Rs 20 billion (USD 340 million) by March this year as its enters the initial years of its challenging restructuring.

The restructuring process would target rationalization of its fleet and route network,among other things,to reduce cost-base and provide it with a more stable footing.

Worse situation faces another carrier,Japan Airlines (JAL),which would require up to USD 15.2 billion for rebuilding itself,the CAPA said in a recent report.

JAL’s restructuring is set to account for the lion’s share of government bailout in the region with Japan’s state-backed Enterprise Turnaround Initiative Corp (ETIC) planning to arrange USD 8.7 billion to support its operations.

Saving China’s Eastern Airlines is the next expensive deal in the region,with Beijing injecting USD 2 billion last year and another USD 1 billion this month,it said.