The Air India Management in their Committee Meeting held recently, decided to issue Preferential Shares amounting to Rs 7500 Crores to their Bankers. There are 21 Banks with whom Air India has their official link.

Being a State owned carrier, a formal approval from the Ministry of Civil Aviation, Govt of India is a must which may take its own time. We know very well how our system works.

Meanwhile Air India Board has appointed a four-member panel to finalize the selection of the Chief Operating Officers for Air India and its low cost subsidiary named Air India Express. The applications are already pouring in and the interviews are likely to take place very   shortly.

Air India thus by raising its capital by 7500 crores will not only perform better but will also save an amount of Rs 1000 crore which they are paying as interest to their bankers annually.

The Management of the State Bank of India has already taken a lead by processing their requests to the Reserve Bank of India for its occurrence. Probably they want to acquire good percentage of their share in Air India’s total working capital. Indeed a good business step for any Banker.

We wish all the best to the Air India Management to come out with a grand success in the process which they should have thought long ago.