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Tuesday, 16 June 2015

Air India loses Rs 5400 crore this year, misses most milestones; Govt clueless on turnaround

New Delhi: The government has asked SBI Capital Markets to review Air India's Turnaround Plan (TAP) and submit a report to it within three months, a move which comes following "drastic changes" in the ground situation in the last three years.

SBI Capital Markets, which is the investment banking arm of public sector lender SBI, has been asked by the Civil Aviation Ministry to carry out a thread bare analysis of TAP, which the erstwhile UPA dispensation had approved for the carrier in 2012, entailing a Rs 30,000 crore bailout package with certain riders, sources said today.

"The Ministry feels that the situation in the aviation industry has undergone sea change since 2012 when Air India's TAP was put in place for ten years and this requires a revisit of the plan," they said.

The SBI Cap has been mandated for this purpose and would submit it reports in three months to the government on the way forward for the national airline, they said.

Also, an Air India Board member had, in April, pitched for a complete re-look of the plan, citing changing micro-economic situation. "What you actually need is a complete re-look at the airline's revival plan," an Air India Independent Director had told PTI.
Read news in full 05/06/15 PTI/Daily News & Analysis

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