AI top level may witness changes

New Delhi: There is trouble brewing for the Air India management, which could lead to some top level changes , amid the airline's battle for survival. Reportedly frustrated at the slow pace of financial restructuring and some questionable decisions like dubious appointments by the management, the four independent board members — who have been on board for six months now — went to the Prime Minister's Office on Monday.
The VC and MD of Mahindra Group, Anand Mahindra ; former air chief Fali Homi Major; Ficci secretary-general Amit Mitra and Yusuffali M A, MD of Dubaibased Emke Group met the principal secretary to the prime minister, T K A Nair. According to sources, they expressed displeasure that not enough was being done on financial restructuring side, despite the fact that the single biggest threat to AI's survival was debt servicing of Rs 18,000-crore working capital loan and aircraft orders for 111 planes worth Rs 50,000 crore, along with mounting losses.
This despite the fact RBI has allowed CDR (corporate debt restructuring) for the airline sector and Vijay Mallya's Kingfisher is already making full use of it. Kingfisher has 10 of its A-320 s grounded due to reasons like lack of engines. With the RBI breather, the airline is now getting 13 engines next week and then three engines every month beginning January , said sources. AI has only now moved with a SBI Caps report to get a similar benefit.
02/11/10 Times of India

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

Categories: Air India Nov 2010