Patel reviews Deloitte's plan for Air India

New Delhi: Civil Aviation Minister Praful Patel held another round of meeting with top officials of Air India in Mumbai on Tuesday to review the financial performance of the government carrier.
In the three-hour meeting with Civil Aviation Secretary Naseem Zaidi, Joint Secretary Prashant Sukul and Air India Chairman Arvind Jadhav, the minister discussed the financial plan made by advisory firm Deloitte.
Representatives of Deloitte, which had vetted the financial plan of the national carrier, were also present in the meeting. Sources said matter such as number of aircraft to be acquired on lease and funds arrangement were also discussed. “The meeting discussed ways to increase the domestic market, by providing more flights, and creating a market in the smaller cities, by introducing flights with smaller aircraft,” said a source who did not want to be identified.
The airline management insisted on getting Cabinet clearances to form a strategic business unit and permission to reopen the wage agreements.
In the report, Air India has asked for an equity infusion of Rs 2,000 crore more from the government in the current financial year. This demand is over and above the Rs 1,200 crore the airline is likely to receive soon.
Patel had earlier said the government would release this Rs 2,000 crore for the beleaguered airline.
29/12/10 Mihir Mishra/Business Standard

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

Categories: Air India Dec 2010