Air India CMD meets cabinet secretary, gets bailout promise

New Delhi: The government has promised to do "everything" that is possible to save the country's flag carrier Air India, which is struggling hard to cope with a cash crunch, a senior airline official said Saturday.
This promise was made by Cabinet Secretary KM Chandrasekhar Saturday in a meeting with Air India's top brass, including its chairman and managing director Arvind Jadhav, the official, who did not wish to be named, said.
"The government now is taking us seriously and looking into our demands. We have been assured that the government would do everything to save the airline from the crisis," he said.
The airline management would meet TKA Nair, principal secretary at the Prime Minister's Office, Wednesday for further discussions.
Civil Aviation Secretary M Madhavan Nambiar was also present at Saturday's meeting.
When contacted, an Air India spokesperson refused to share any details.
Asked whether the airline officials met the cabinet secretary, he said: "I will neither admit nor deny this."
The Air India chairman has been camping in the capital for the last two days.Another airline official, on condition of anonymity, said that the U-turn in the government's stand shows that Air India's "pressure tactics" have succeeded.
National Aviation Co India Ltd, which owns Air India, had earlier announced that it would delay the June salaries of its employees by 15 days.
It also asked its top management to voluntarily forego one-month salary and productivity linked incentives.
20/06/09 IANS/Economic Times

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Categories: NACIL Jun 2009