Air India to submit restructuring plan on 25 July
18 July 2009
New Delhi: State-owned Air India will present a roadmap for a two-year restructuring effort to a committee of secretaries on 25 July, according to senior executives at the airline and civil aviation ministry officials. These sources said that the plan will also set out six-month milestones for the entire restructuring period.
Air India is the country's largest carrier by fleet size and operates under the aegis of a holding company, the National Aviation Co. of India Ltd.
Reeling under mounting loans, and dwindling revenues from a falling market share, Air India was asked to prepare a restructuring plan in order to qualify for government financial intervention.
The committee is headed by cabinet secretary KM Chandrasekhar, with members including finance secretary Ashok Chawla, civil aviation secretary Madhavan Nambiar, and principal secretary to the prime minister, TKA Nair.
Air India business heads will also be making presentations to Accenture Ltd and SBI Captial Markets Ltd before finally submitting the restructuring plan to the government.
While Accenture was previously engaged by the airline to aid in its merger with domestic carrier Indian Airlines, SBI Capital has been taken on as a financial consultant.