Booz drafts Rs5,000 cr savings plan for Air India

Mumbai: Consulting firm Booz Allen Hamilton Inc. has suggested to National Aviation Co. of India Ltd, or Nacil, that runs national flag carrier Air India, at least 70 cost-cutting and revenue-enhancement measures that could generate up to Rs5,000 crore in next 18 months.
Air India posted a Rs5,548 crore loss in 2008-09 and is expecting another Rs5,000 crore loss in the current fiscal year.
The government, which owns the airline, has clarified that it will link further equity infusion in the ailing carrier to performance.
Air India, which had posted an accumulated loss of Rs7,774 crore till now, appointed Booz Allen in October to look at costs across the board and suggest ways to save. The first meeting of the consultant, which has worked extensively with airlines in other parts of the world, with the carrier’s board took place in New Delhi on Monday.
Public relation agency 20:20 Media that represents the consulting firm in India said in an email that the firm would not be able to comment on the issue because of issues related to client confidentiality. Jitender Bhargava, executive director (corporate communications) at Nacil confirmed the Booz Allen meeting, but declined to divulge details.
18/11/09 P.R. Sanjai/Live Mint

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Categories: Foreign Nov 2009, NACIL Nov 2009