Friday, December 14, 2018

Government revival plan for Air India ready

New Delhi: While the government is ready with a revival plan for ailing Air India, it also owes over 1,000 crore as of November 30 to the debt-laden national carrier for VVIP charter flights. The outstanding amount of 1,000.62 crore for special extra section flights is due from the ministry of external affairs, ministry of defence and ministry of home affairs. In a written reply to the Lok Sabha, minister of civil aviation Jayant Sinha said, “Regular follow-ups for the same are made by Air India and Ministry of Civil Aviation, and normally such dues are cleared from time to time.”

The quantum of dues is almost double of what it was two years ago. The government has prepared a revival plan for Air India which is focused on building a competitive and profitable airline group. The plan comprises several major elements, including a comprehensive financial package, as approved by the Government of India - this includes transferring non-core debt and assets to a special purpose vehicle (SPV).

The plan also involves achieving higher levels of operational efficiency by strengthening management and implementing best practice business processes and robust organizational and governance reforms to be implemented by an eminent Board. Apart from this, differentiated business strategies for each of Air India”s core businesses will be adopted for better results and world-class HR practices to ensure a talented and motivated workforce.
14/12/18 Kumar Vikram/New Indian Express

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