AI sets higher revenue goals for key depts

New Delhi: Air India chief Arvind Jadhav has increased the revenue targets for all the key department heads of the company. This comes at a time when the debt-ridden airline is on the verge of defaulting on the interest payment of its R21,000-crore working capital loan and is seeking financial assistance from the government. The company has not paid interest on the loan since May.
Jadhav has asked department heads to earn R65 crore a day against the current target of R36 crore in order to break even. The state-owned airline loses about R23 crore a day due to operational inefficiency, rising high-cost debt and an increase in input cost.

“In a meeting with executive directors last week the chairman gave revenue targets to all the major departments. Commercial departments have to earn R11 crore additional per day. Others such as cargo, engineering and security departments have also been giving additional revenue targets,” an airline official said.
The financial health of Air India has only worsened by the day and the airline is currently facing one of the worst liquidity crisis in its history. The airline has failed to even pay salaries of its employees and has dues of R2,250 crore to oil companies on account of jetfuel.
04/07/11 Nirbhay Kumar/Financial Express

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Categories: Air India Jul 2011