India Asks National Aviation to Submit Cost Cutting Proposal

National Aviation Co. of India, parent of the state-run carrier that’s seeking a bailout, has been asked by the government to submit a proposal on how it will cut costs.
Any assistance from the government will need to be matched by reductions in expenses and better revenue management by the carrier, according to a statement posted on the government’s Press Information Bureau Web site.
The Committee of Secretaries reviewed decisions taken on June 24, and noted that Air India will need to renew its fleet because of the intense competition it faces, the statement said. The Ministry of Petroleum was asked to extend the credit limit for National Aviation for three months, it said.
25/07/09 Bloomberg/M.C. Govardhana Rangan

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Categories: NACIL Jul 2009