AI board begins talks on cost-cutting measures

Mumbai/New Delhi: The Air India (AI) board today began deliberations on crucial financial issues like bridge loans for aircraft deliveries, its plans for commercial transformation and reinventing the brand.
At the start of the two-day meet, functional directors of the National Aviation Company of India (NACIL) made presentations on their plans and strategies to reduce costs and on operations to the board, sources said.
The meeting comes in the backdrop of the government approving the grant of the first tranche of equity infusion of Rs 800 crore and asking the company to take urgent cost-reduction and revenue enhancement measures to turnaround the loss-making national carrier.
The board is understood to have taken up as many as five proposals for approval, including financial sanctions for the commercial transformation of AI, they told PTI.
The board would take up "a proposal to seek financial sanction of Rs 12.86 crore for its commercial transformation project to be undertaken as per the advise of Mckinsey (consultancy firm) and for reinventing the brand," they said.
In addition, the management would also seek the board's approval for bridge loans for aircraft deliveries this year and extension to Accenture, which is working on the merger process of erstwhile Indian Airlines and AI, for another six months, they said.
08/01/10 Press Trust of India/Business Standard

To Read the News in full at Source, Click the Headline

Categories: NACIL Jan 2010