AI should be placed under special administration: CAPA

New Delhi: A global aviation consultancy firm has suggested that Air India should be placed under a special administration, like in the case of telecom company Satyam, to facilitate its turnaround.
The Sydney-based Centre for Asia Pacific Aviation (CAPA) also warned that the unresolved human resources issues would continue to be a source of labour unrest, like the ongoing pilots' strike.
In a report released globally on Wednesday, it said Air India planned to launch a low-cost carrier in the domestic market by converting its fleet of 12-14 aged Airbus A-320 planes into single-class configuration, claiming that at least two aircraft have already been reconfigured.
Observing that the airline continued to "lurch from one crisis to the next", suffering from low productivity, high costs, significant unresolved human resource issues and an unviable business model, it said, "Air India should be placed in special administration, similar to that adopted for Satyam, if any meaningful progress is to be achieved."
27/06/12 PTI/ZeeNews

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Categories: Air India Jun 2012