Civil Aviation Minister Vyalar Ravi says turnaround plans for Air India in pipeline

Mumbai: Civil Aviation Minister Vyalar Ravi on Thursday told Air India employees that a turnaround plan for the ailing national carrier would be worked out, allaying fears of privatisation. The minister also assured trade union representatives that there would be no retrenchment and employees' interests would be protected.
A group of ministers (GoM) is scheduled to meet on July 18, to decide on the fate of the cash-strapped airline. "It was a confidence-building exercise ahead of the GoM meeting next week.
The minister assured that there will be no privatisation and that the government has pledged its full support for the revival of the airline" , said a union leader . The airline's unions had raised issues concerning delay in salaries and lack of a cohesive HR policy. The meeting of the GoM, headed by Finance Minister Pranab Mukherjee , is likely to approve an additional equity infusion of Rs 1,200 crore.
The matter will then be placed before the Cabinet Committee on Economic Affairs for approval. Debt-ridden Air India has loans of up to Rs 44,000 crore, working capital loans of Rs 22,000 crore and accumulated losses of over Rs 15,000 crore, mainly on account of its merger with Indian Airlines in 2007 and aircraft purchases.
08/07/11 Economic Times

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Categories: Air India Jul 2011