Years of uncertainty over the fate of financially distressed national carrier Air India (AI) ended, after the Union Cabinet on Thursday approved an operational turnaround plan through an equity infusion of Rs 30,000 crore over the next eight years.
"The Cabinet Committee on Economic Affairs (CCEA) has approved the turnaround plan (TAP) and financial restructuring plan (FRP) of Air India, under which the government will infuse Rs 30,000 crore into the airline by 2020-21, subject to certain milestones that AI will have to meet," civil aviation minister Ajit Singh said.
The aviation ministry will soon constitute a committee of officers to monitor Air India's performance, Singh said, adding that the Cabinet has also approved acquisition of all 27 Dreamliner aircraft by the airline.
As per the TAP, which envisages the airline to be profitable in 10-15 years, Air India will hive off maintenance, repair and overhaul (MRO) and ground-handling services into two different companies with different profit centers. "This will divert 7,000 workers to the MRO business and 12,000 towards the ground-handling company, which will align the employee-aircraft ratio with global standards," the minister said.
13/04/12 Economic Times
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