Will a strategic investor rescue Air India?

New Delhi: Will the government listen to certain sections within itself and agree to bring in a strategic investor into Air India? Highly placed sources indicated, on Wednesday, that such a proposal is part of a comprehensive cabinet note being prepared by the Civil aviation ministry on options for the beleaguered national carrier.
Pooh-poohing any talk of a public offer by AI, sources said that even the strategic investor proposal will first be discussed informally by Civil aviation minister Praful Patel with his colleagues in the group of ministers (GoM) on aviation before being taken to the cabinet.
Issues such as an across-the-board wage cut for AI employees are also being referred to the cabinet. Indicating that revival of AI is “still not impossible” sources said that an attempt has already been made to professionalise the airline’s top management.
Well-known personalities such as Anand Mahindra, Amit Mitra, Fali Major and Harish Neotia have been appointed as independent directors on the AI board. Then, interviews to select a chief operating officer (COO) are slated for Friday. Even here, luminaries such as Mahindra, Uday Kotak and Sajjan Jindal have been brought in to assist the interview panel take the right decision.
25/03/10 Sindhu Bhattacharya/Daily News & Analysis

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Categories: NACIL Mar 2010