Wednesday, August 02, 2017

TAP makes substantial progress in financial turnaround of Air India

The Government of India had approved a Turnaround Plan (TAP) / Financial Restructuring Plan (FRP) for operational and financial turnaround of Air India. The TAP/FRP provides equity infusion of Rs.30,231 crores upto 2021 subject to achievement of certain milestones.

Minister of State for Civil Aviation Jayant Sinha in a written reply to a question in the Rajya Sabha today said that Company has made substantial progress in both operational as well as financial areas as per TAP Milestones.

As a part of the turnaround strategy, the company, with the overall support of the government, has initiated a number of steps in order to cut costs and losses. These steps, inter-alia, include the following:

i. Route rationalization of erstwhile Air India (AI) & Indian Airlines (IA) route and elimination of route network involving parallel operations.
ii. Rationalization of certain loss making routes.
iii. Enhanced utilization of new fleet resulting in production of higher Available Seat Kilometers (ASKMs).
02/08/17 Indian Awaz