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Wednesday, 5 August 2015

Monetisation, fleet expansion targets missed: Air India wants turnaround plan corrected now

New Delhi: Air India is seeking a mid-term correction in its Turnaround Plan as some "assumptions" made in the plan are no longer valid. The government is still committed to infuse Rs 30,000 crore as equity over a decade in Air India to make it stand on its own feet as per this plan. The corrections pertain to Air India's inability to meet some milestones which were set out in this plan, which the airline wants pushed forward now.

A senior airline official claimed all operational milestones set in the TAP have been met though and that the tweaking pertains to things like monetization of properties, fleet expansion etc. Will the reworking of the TAP also involve a suggestion to the government to disinvest in this white elephant - this remains to be seen. We hear there have been enough discussions internally within Air India and among stakeholders over this issue and the airline's independent directors have already made it known they would favour disinvestment by the government at the earliest.
Read news in full 04/08/15 Sindhu Bhattacharya/First Post
Representational image. PTI

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