Business
AI to discuss new business plan
By Gargi Parsai
NEW DELHI, DEC. 11. With the disinvestment of Air India off, the airline management plans to put up a revised business plan before the Government for ``re-vitalising'' the airline which may include an infusion of Rs. 1,000 crores from the sale of Hotel Corporation of India. The plan is slated to be finalised in the board of directors' meeting scheduled to be held here tomorrow.
The board will also be informed about the Haj operations for this year. About 70,000 Hajis are to be transported this year by Air India, Indian Airlines and Saudia. This year Air India plans to fly about 30,000 Hajis to Mecca. Another 30,000 would be flown by Saudia Airlines and 10,000 by Indian Airlines.
For this, Air India will utilise two Boeing 747-200s and an Airbus A-310. Sources indicated that the regular flight operations will not be disrupted due to Haj operations.
The Minister for Civil Aviation, Mr. Shahnawaz Hussain, has been quite vocal about ``strengthening'' Air India. In the scheme of things is procurement of new aircraft, leasing of two more aircraft, opening new routes and implementation of the voluntary retirement scheme (VRS) which will cut flab and bring savings for the airline.
As part of its fleet expansion plan, Air India has acquired on lease four Airbus A-310 and plans to acquire two more. The new aircraft have been operationalised on the Gulf and Singapore routes. In the board meeting, the airline will also discuss how to raise investment for new aircrfat and expansion plans.
Normally 80 per cent is borrowed from the market and the balance from internal resources. The recent withdrawal of Tata Group, the sole bidder for Air India, has put off the disinvestment plan for Air India for the time being. The Minister has indicated that there are no immediate plans to call for a re-bid. The airline will first be made saleable before privatisation.
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