SBI Caps to advise on Air India revamp: Praful Patel

22 Jul 2009

The government has appointed SBI Caps to suggest a roadmap for the financial restructuring of Air India in the short and medium term, civil aviation minister Praful Patel said today.

He said the civil aviation ministry has also lined up a series of initiatives to revamp the top management of the national carrier and shore up its finances.

"We will go for the transformation of the management from the top. We will bring in independent directors, have a professional chief operating officer to assist the CMD and appoint an international advisory agency" Patel said.

Speaking at the launch function of India Aviation 2010 in Delhi, Patel dismissed criticism against the government for alleged interference in the day-to-day management of Air India. "There is no regulation, no interference in managing the company," he said.

He said, the high cost structure, certain inefficiencies and compulsions of the PSU airline have been engaging the mind of the government and that is why "we feel there is a need to bring about a transformation in the work ethic and ethos of the company."

While the government was doing its bit to put the airlines on an even keel, "we also expect an equal amount of enthusiasm and commitment from within the organisation," the minister said.