AI hires COO; sets date for revival plan

New Delhi: The new board of Air India set a 30-day deadline for preparing a turnaround plan for the loss-making state-owned airline on a day when it also appointed Gustav Baldauf as its chief operating officer.
Both are significant moves in efforts to revive the airline, run by National Aviation Co. of India Ltd (Nacil). The revival plan, which will have milestones that will be reviewed by Air India’s board, holds the key to further financial assistance from the government.
The new turnaround plan will effectively replace a previous one proposed by the airline in August.
The government has already infused Rs945 crore into Air India, most recently through two infusions totalling Rs800 crore in February and March, but has said that further help will depend on the ability of the airline to put its finances in order and cut costs. Air India, until recently, had a low equity capital of Rs145 crore and has lost in excess of $2 billion (Rs8,900 crore today) over the past two years.
Baldauf, a former employee of Jet Airways (India) Ltd and Austrian Airlines, whose appointment will have to be approved by India’s cabinet committee on appointments, was chosen by the board that includes Anand Mahindra, vice-chairman and managing director of Mahindra and Mahindra Ltd, Federation of Indian Chambers of Commerce and Industry general secretary Amit Mitra, industrialist Harsh Neotia and Air Chief Marshal (retired) Fali H. Major. The airline’s chairman and managing director Arvind Jadhav made a presentation on the state of the airline to his fellow members on the board.
07/04/10 Tarun Shukla/Live Mint

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Categories: NACIL Apr 2010