Air India restructuring plans being readied

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.
09/09/07 Vinay Kumar/The Hindu

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Categories: NACIL Jul 2009