PM extends support to AI restructuring

Prime Minister Manmohan Singh today extended "fullest support" to the cash-strapped Air India on a condition that it would immediately restructure by cutting costs and flab and overhaul its top management to become "leaner and trimmer".

He gave the assurance to Civil Aviation Minister Praful Patel that the government would put its entire weight behind the national carrier so that it could regain its pride of place in aviation soon.

The government is likely to infuse additional equity into the carrier and give it a soft loan to help meet its losses and fleet acquisition and expansion plans. However, Patel did not give any indication as to how much the package would be.

A high-level committee of secretaries, headed by Cabinet Secretary K M Chandrasekhar, has been set up to closely monitor the cost-cutting measures being undertaken by the airline, the Minister said.

Air India has been asked to come up with a detailed restructuring plan within a month and submit it to the panel which would meet once every month, he said.

"The Prime Minister has said the entire weight of the government is behind Air India. It is our national carrier and our pride. But there is a conditionality that Air India must put its best foot forward. The employees must realise that there is a problem and every employee must realise that it is not a problem of only government and management," Patel said.