Revival board seeks health details of Air India

New Delhi: With Air India incurring losses for three consecutive years and moving into a category that qualifies it being called sick, the Board for Reconstruction of Public Sector Enterprises (BRPSE) has sought financial details of state-owned National Aviation Company of India Ltd (Nacil) or Air India from the civil aviation ministry.
The BRPSE, set up by the government in December 2004 to review sick companies and suggest revival plans, hopes to chart a turnaround course for Air India. It has so far been instrumental in turning around 14 sick government companies of the total 30 referred to it by various administrative ministries.
Nacil, formed by merging Air India and Indian Airlines in August 2007, qualifies to be termed sick, a senior official with BRPSE said. Air India has accumulated losses of Rs 7,200 crore as on March 31, 2009. Its net worth has been wiped off.
Air India has, however, contested BRPSE’s claim that it can be labeled a sick company.
“Nacil has been in existence for around two years only as it legally merged on August 27, 2007, so where is the question of it being a sick company?” an airline executive told The Indian Express.
13/01/10 Smita Aggarwal/Gunjan Pradhan Sinha/Indian Express

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Categories: NACIL Jan 2010