Air India is expected to earn cash profit by 2018! This is what the Civil Aviation Minister, Mr Ajit Singh, had to say while announcing the Turnaround and Financial Restructuring Plan for the debt-laden national carrier. He mentioned that certain milestones are to be achieved before releasing equity support of over Rs 30,200 crore between 2012 and 2021.
The release of funds would be subject to achievement of the milestones, including pay load factor (PLF), on-time performance (OTP), fleet utilisation, yield factor and rationalisation of employee emolument structure. An oversight committee will ensure milestones are achieved before the release of funds. However, Mr Singh is non-committal on two key milestones placed in the draft financial plan.
Secondly, too many doubts are being raised on the planned milestones. One of them is achieving a PLF of 73 per cent by 2015 and 75 per cent by 2020. The latest statistics on the Web site of the Directorate-General of Civil Aviation (DGCA) say that Air India had lowest PLF among seven domestic airlines.
15/04/12 Shishir Sinha/Business Line
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