Air India turnaround panel gets cracking

Mumbai: The turnaround committee of Air India has begun its agenda of revival on a war footing even as its Chairman and Managing Director, Mr Arvind Jadhav, has warned employees of tough days ahead in a recent communiqué.
On the first day of its meeting on Friday, the committee discussed ways of reducing costs and improving revenues from operations areas, airline sources told Business Line. The 10-hour long marathon session saw presentations made by engineering, operations, stores, flight safety and ground-handling departments.
The discussions revolved around a “strategy to restore pride” of the national carrier and implementation of integration processes. The other issue that was dwelt upon was earmarking potential earnings from strategic business units (ground handling, engineering services and cargo) along with “improved work methods leading to substantial cost reductions”.
Air India is also keen on charting out a concrete strategy and drawing plans on a six, 12 and 18-month basis.
The turnaround committee, which comprises management and union representatives, will keep brainstorming in the coming weeks until a final revival plan is ready for submission to the Government.
Air India has also been asked to ready a comprehensive restructuring proposal by July-end to be submitted to the newly set up Committee of Secretaries (CoS) headed by the Cabinet Secretary and comprising the Finance Secretary, Civil Aviation Ministry and the Principal Secretary to the Prime Minister. This panel will meet every month to review the progress of targets achieved.
Skating on thin ice
05/07/09 Shubhra Tandon/Business Line

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Categories: NACIL Jul 2009