Govt sets up cost-saving committee for Air India

Civil aviation minister Ajit Singh has constituted  a five member committee to suggest cost saving measures to Air India. Singh decided to set up the committee after a review of airline operations last month revealed that the airline was facing a cash shortfall of over Rs 400 crore each month.

The committee will be headed by professor Ravindra Dholakia of IIM Ahmedabad and will include Prabhat Kumar, joint secretary in civil aviation ministry, Nasir Ali, deputy managing director of Air India, Rajesh Agarwal, director finance of ICRISAT and S Mukherjee, former director-commercial of Air India.

The committee will submit report in two months but has also been instructed to submit an interim report which can be implemented immediately. The committee will examine the best practices followed by other airlines, analyse factors which are affecting the finances of the airline, suggest optimal inventory management system and review expenses on overseas offices including man power deployment.