Mumbai: National carrier Air India's turnaround plan is yet to get off the ground with the government deciding to form a committee to vet the business restructuring blueprint prepared by the consultancy firm Deloitte Touche Tohmatsu (India).
The group of ministers (GoM), which met in New Delhi on Wednesday, has proposed to form a committee with representatives from the department of economic affairs, department of expenditure, department of financial services, ministry of civil aviation and the Planning Commission to examine the turnaround and the financial restructuring plan. This committee will submit its report in the next six weeks, a statement issued by civil aviation minister Vayalar Ravi said.
Wednesday's meeting was attended by petroleum minster S Jaipal Reddy, civil aviation minster Vyalar Ravi, finance minister Pranab Mukherjee , Planning Commission deputy chairman Montek Singh Ahluwalia and civil aviation secretary Dr Naseem Zaidi along with Air India CMD Arvind Jadhav.
The turnaround plan envisages boosting revenues by Rs 5,000 crore by capacity expansion and slashing costs by Rs 4,000 crore per annum, making the airline operationally profitable by 2015. The plan also looks to increase the number of passengers to 17 million in 2015 and lift the passenger load factor to about 75%.
23/06/11 Economic Times
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