Air India flies into flak at Group of Ministers meet

New Delhi: The Union Ministers for Finance and Home — Mr Pranab Mukherjee and Mr P. Chidambaram — are said to have expressed displeasure at the current functioning of Air India.
At a recent meeting of the Group of Ministers (GoM), the two Ministers are learnt to have indicated that not only was there no clear plan for the revival of the airline but there seems to be no light at the end of the tunnel despite the Government pumping in funds. A source privy to the information said that the GoM was not a “pleasant one”.
“The minutes of the GoM during which the two Ministers were not greatly appreciative of the steps being taken to revive the airline, should be ready by early next week. Work on preparation of a Cabinet note outlining a roadmap for revival of the airline will be ready soon. Depending on what is approved, the proposals will be implemented,” sources close to the development told Business Line.
The airline reported a post tax loss of Rs 5,548.26 crore during fiscal 2008-09. Its outstandings to vendors, including oil marketing companies, have risen to Rs 2,600 crore from about Rs 1,000 crore late last year.
07/02/10 Ashwini Phadnis/Business Line

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Categories: NACIL Feb 2010