The Hindu : Front Page : Air India restructuring plans being readied

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Thursday, Jul 09, 2009
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Air India restructuring plans being readied

Vinay Kumar

NEW DELHI: The National Aviation Company of India Limited (NACIL), the holding company of Air India, is working overtime to prepare by the month-end a business plan and a financial restructuring plan.

The NACIL is also expected to come up with plans for the next six months, 12 months and 18 months for bringing in cost reduction and improving revenue generation. This “action plan” was presented before Prime Minister Manmohan Singh at a meeting two weeks ago.

Some of the measures will include rationalisation of manpower and productivity- linked incentives, integration of the erstwhile Indian Airlines and Air India, review of all agreements on technical and operational matters, return of the leased aircraft at the earliest, large-scale redeployment to curb infructuous expenditure, and closure of all overseas offices where the NACIL does not operate.

Air India employees, according to their categories, will be paid their June salaries by July 10 and July 14, informed sources said.

It was also decided to strengthen the NACIL Board of Directors by taking in experts in finance, law, hospitality, information technology and other relevant fields.

A committee of Secretaries, chaired by the Cabinet Secretary and including the Finance Secretary and the Civil Aviation Secretary, will closely monitor the turnaround plan of NACIL.

In keeping with the Prime Minister’s observation that being the country’s national carrier, Air India’s healthy functioning has to be ensured and India’s pride in its national carriers has to be restored, Civil Aviation Minister Praful Patel has indicated that Air India could look at starting low-cost domestic operations.

In a bid to strengthen customer care and undertake various customer outreach programmes, Air India has also set up a National Passenger Advisory Board.

Role for Pitroda, Narayana Murthy

IANS reports:

The Civil Aviation Ministry is considering the names of some top industrialists and technocrats, including Sam Pitroda, N.R. Narayana Murthy and S. Ramadorai, for reviving Air India, official sources said.

“Our Minister has initiated the process. These names will be finalised soon,” a top official said, referring to Mr. Praful Patel’s plans to find eminent persons who will help turn the ailing carrier around.

Also see

Air India to overhaul top management

Strike will send a wrong message: Patel - Exclusive

Air India should put its house in order: Praful Patel - Interview

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