New Delhi: India is betting on a former railway bureaucrat who styles himself as "Mr Turnaround" to fix the financial troubles of debt-burdened national carrier Air India, which last made a profit in 2007.
Ashwani Lohani, whose past roles include stints at India's railways and a regional tourism board, will take over as chairman and managing director next week, an Air India spokesman said on Friday.
He has a tough task ahead. Once India's biggest carrier, Air India's market share has tumbled to about 15 percent amid rising competition from nimbler private sector rivals. It is sitting on 500 billion rupees ($7.6 billion) of debt and annual interest costs of $600 million are hampering investment in its revival.
The airline, which received a $5.8 billion government bailout in 2012, is expected to report another operational loss for the 2014-15 fiscal year when it announces its results next month, a senior executive told Reuters.
21/08/15 Tommy Wilkes/Reuters
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Ashwani Lohani, whose past roles include stints at India's railways and a regional tourism board, will take over as chairman and managing director next week, an Air India spokesman said on Friday.
He has a tough task ahead. Once India's biggest carrier, Air India's market share has tumbled to about 15 percent amid rising competition from nimbler private sector rivals. It is sitting on 500 billion rupees ($7.6 billion) of debt and annual interest costs of $600 million are hampering investment in its revival.
The airline, which received a $5.8 billion government bailout in 2012, is expected to report another operational loss for the 2014-15 fiscal year when it announces its results next month, a senior executive told Reuters.
21/08/15 Tommy Wilkes/Reuters
