PM prepares blueprint for Air India's revival
02 Jul 2009
Prime Minister Manmohan Singh has asked state carrier Air India to submit its business plan within 30 days detailing financial re-structuring and rationalisation of manpower. (See: Restructure before bailout is the message for Air India)
A three-member panel headed by cabinet secretary and including civil aviation secretary and finance secretary will monitor Air India's turnaround. The airline is seeking equity and soft loan capital.
The airline is seeking to cut its employee costs by more than $100 million annually. It had recently asked senior employees to abstain from claiming salaries in July. (See: The airline is seeking equity and soft loan capital)
Also on the radar is the integration of Air India and Indian Airlines to be completed within 30 days.
Air India's loss in the last financial year amounted to Rs4,000 crore.
According to Air India, it has been impacted by the ongoing global crisis.
