Air India bailed out by government

City A.M. Reporter
THE Indian government has agreed to pump in $173m (£110m) to struggling national carrier Air India.

The money is part of an estimated £277m lifeline for the company.

Air India reported a loss of $875m in the financial year ending in March 2009.

The government has ordered the carrier’s management to slash costs.

But plans to cut incentives saw hundreds of Air India pilots taking strike action in September.

The strikes were called off after the government stepped in.