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After reporting a net loss of $1 billion in the fiscal year ended March 31, Air India requested $820 million in equity and loans from the government. The government agreed but did not divulge the amount in aid. It is also demanding the airline restructure to avert future losses. Air India wants to reduce salary costs this year by $103 million.

In a move to modernize its defense forces, the government of India will buy eight P-81 military aircraft from Boeing Co. for $2.1 billion, with the first airplane expected for delivery in 2013. Because of a rapidly-expanding economy, it is estimated India will need 1,001 new aircraft at a total value of $105 billion by 2027.

Limited consumer credit and high fuel costs caused automotive sales in India to drop 19% in November, the worst drop in eight years. Passenger car sales dropped to 83,059 units, medium- and heavy-duty truck sales fell 63% to 8,325 units, and motorcycle sales dropped 20% to 431,171. Article discusses sellers' incentives to entice buyers, and the industry's recovery prospects.

Norwegian telecom Telenor ASA plans to acquire an estimated 60% stake in Unitech Wireless, a start-up unit of India's Unitech Ltd., for 61.2 billion rupees. Unitech Wireless has an enterprise value of 116.20 billion rupees and will begin operations in the first half of 2009. On Wednesday, Telenor reported a 33% third-quarter net profit drop to 3 billion Norwegian kroner, while revenue rose 2.8% to 23.79 billion kroner.

Japan's Nissan Motor Co. and India's Ashok Leyland Ltd. have created a joint venture to manufacture and sell light commercial vehicles such as mini-buses and mini-trucks in the Indian market. Demand for these vehicles is expected to increase six-fold to reach $732 mil by year-end 2010. The joint venture consists of a technology development division, an engine manufacturing division, and a manufacturing division.

The article reports that the Indian government has committed to give assistance to Air India, a state-owned carrier. The airline reported a loss of approximately $1 billion for the fiscal year ending March 31,2009. The company also asked for a bailout while the government asserted that it should undergo restructuring.

The article reports on the completion of the evaluation of six types of fighter jets from U.S. companies Lockheed Martin Corp. and Boeing Co. and other manufacturers by the Indian air force for a contract valued at more than $10 billion. India also invited separate bids for combat helicopters and for heavy-lift helicopters. According to the Indian air force's web site, it has 1,700 aircraft, including helicopters and transport planes. Bidders for the fighter-jet contract are mentioned.

This article reports on the performance of the automobile industry in India for the fiscal year ended March 31, 2009. It says that domestic car sales grew only 1.3% to 1.21 million cars from 1.2 million in the previous fiscal year. However, the country's car exports increased as Hyundai Motor Co. and Maruti Suzuki India Ltd. shipped a record number mainly to Europe. The country's exports grew 57% to 331,539 vehicles.

The article reports on the statement by Kingfisher Airlines Ltd. that several international carriers are interested in buying a stake in the firm. Analysts warn that any potential deal remains a far cry as current regulations forbid overseas airlines from owning a stake in an Indian airline. The U.S. government was asked by billionaire Vijay Mallya to relax the present norms to help secure the future of the aviation industry in India.

The article announces that Air India is seeking 20 billion rupees as financial support from the government for the expansion of its equity capital base and its operations in India in 2008. Raghu Monon, chairman and managing director of National Aviation Co. of India Ltd., explained that the state-run carrier is expected to have a net loss of about 20 billion rupees in the fiscal year ended March 31.

The article reports on the investment of billionaire Wilbur Ross in SpiceJet Ltd., a discount carrier based in New Delhi, India. Ross has agreed to invest 3.45 billion rupees or $80.4 million to the Indian airline which will involve equity-like securities. He believes that SpiceJet has growth potential despite its decline in passengers due to its high fares.

The article reports on the joint venture formed by U.S. retailer Wal-Mart Stores Inc. with Bharti Enterprises Ltd. of India. The move by Wal-Mart is aimed at establishing international operations capable of fueling its sales growth as its U.S. operations mature. Under the joint venture pact, Wal-Mart will sell goods to small retailers, manufacturers and farmers in India.

The article speculates on the stock trading of India's motorcycle companies during the monsoon season in 2007. Historically, monsoon means strong sales for makers of scooters and motorcycles such as Hero Honda Motors, Bajaj Auto and TVS Motor in rural areas in India. All three motorbike stocks are trading near five-month lows, while the benchmark Sensex has increased 17 percent since the fiscal year began April 1, 2007.

The article on the plans by car manufacturer General Motors (GM) Corp. to focus on the Asian market. The company announced on the same day that it will cut 1,400 jobs in Belgium and has growth plans in India and China. The author notes that the cuts highlights the trend in Western automobile makers of slashing jobs in high-wage countries while adding them in lower-cost areas.