Govt asks AI to save Rs 2,000 cr by March

New Delhi: The government will infuse equity into Air India by March, but only if the ailing state-run carrier manages to generate another Rs 2,000 crore by increasing revenue and cutting costs.
Praful Patel “We have set parameters and will monitor the airline on a monthly basis. The airline will have to perform and prove itself (by) revenue enhancement and a cost-cutting programme to the extent of at least Rs 2,000 crore,” Union civil aviation minister Praful Patel said today after a meeting of the Group of Ministers (GoM) on the subject.
AI Chairman and Managing Director Arvind Jadhav gave a presentation to the GoM headed by Finance Minister Pranab Mukherjee. It also comprises Patel, petroleum minister Murli Deora, home minister P Chidambaram and Planning Commission deputy chairman Montek Singh Ahluwalia.
The meeting was also attended by aviation secretary M M Nambiar and joint secretary and financial advisor E K Bharat Bhushan.
Patel appealed to AI’s employees to put their best foot forward in turning the airline around. “This is a time of challenge. Everybody should contribute to the turnaround,” said the minister.
13/11/09 Business Standard

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Categories: NACIL Nov 2009