Sunday, October 07, 2018

Don't infuse public funds in Air India without revival plan: aviation think tank

Mumb ai: With the Civil Aviation Ministry hinting at a second revival package for beleaguered Air India within 10 days, aviation think tank CAPA India on Saturday suggested that public funds should not be infused without a realistic restructuring and business plan for revival in place.
“A bail out package without comprehensive restructuring and a new and practical long term strategy would be a strategic mistake,” CAPA India said in a note recommending some dos and don’ts in view of the developments.
It suggested that until a well-structured plan is developed and approved by the board and management, the government should provide interim financing, and go for full funding once the plan to remove capital debt from the airline’s balance sheet is in place.
Calling for an accountable and empowered board headed by an accomplished executive from the Indian Public Sector Units with demonstrable track record, CAPA India said it is critical that the board is “ring-fenced” from any external influences. “For the airline to be governed effectively, the Board and management must be able to focus on the business at hand without distractions or interference, whether political or otherwise,” it said.
07/10/18 Satish Nandgaonkar/Mumbai Mirror
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