You are here: Home » Companies » News
Business Standard

Revival plan will give Air India benefit of Rs 20 bn annually: Official

The government is working on efforts to turn around the national carrier, which has a debt burden of over Rs 500 billion

Topics
Air India Revival  |  Civil Aviation  |  Aviation Industry

Press Trust of India  |  New Delhi 

Air India, FinMin, finance ministry, civil aviation ministry, SPV, special purpose vehicles, air india debt, air india, Air India Air Transport Service Limited, air india loan, air india loan, air india flights, air india divestment, air india stake
Air India

To revive Air India's fortunes, a plan is being implemented that will result in annual financial benefits worth Rs 20 billion by way of cost cutting and revenue enhancement measures, a senior official said Wednesday.

Secretary R N Choubey said the plan was drawn up around 15 to 20 days ago and focuses on about "10 to 12 items" but did not divulge specific details.

The government is working on efforts to turn around the national carrier, which has a debt burden of over Rs 500 billion.

Talking about the plan, Choubey said, "financial benefits" to would be around Rs 20 billion per annum by way of cost cutting and revenue enhancement measures.
 

The implementation of the plan, which has been prepared on the basis of recent levels of and rupee value, would be monitored by the ministry, he added.

When asked whether the plan is being implemented, Choubey replied in the affirmative.
 

Emphasising that the efforts are to ensure that is "competitive and viable", Choubey said the has to work on efficiency improvements.

"We have told them, on one hand, work on efficiency improvements and on the other hand, we will ensure support for you if you are able to show efficiency improvements," he noted.

On Tuesday, a ministerial panel approved cleared a proposal for strategic sale of Air India's ground handling subsidiary AIATSL.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, November 28 2018. 20:06 IST
RECOMMENDED FOR YOU
.