Air India losses: PAC invites suggestions from unions

New Delhi: Parliament's Public Accounts Committee on Wednesday held discussions with representatives of various unions and associations of Air India on huge losses incurred by the national carrier and invited suggestions from them to deal with the issue.
In today's meeting, chaired by PAC chief Murli Manohar Joshi, Air India unions said the merger of the erstwhile Air India and Indian Airlines was a major reason for the present financial mess.
They suggested that a holding company should be formed under which Air India and Indian Airlines can be made separate entities.
Other suggestions by the associations include giving back Air India all ground handling rights. Under the present system, Air India and Air India-Singapore Airport Terminal Services (AI-SATS) have a 50:50 share. This has taken away a sizable source of income of Air India.
The Air India unions also suggested doing away with bilaterals between India and other countries. However, PAC members pointed out that this was easier said than done and questioned the benefits of this proposition.
22/02/12 PTI/Daily News & Analysis

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Categories: Air India Feb 2012