Government okays AI revamp plan; to infuse Rs30,000 cr by 2020
12 Apr 2012
In a big boost to sinking national carrier Air India, the cabinet committee on economic affairs (CCEA) today approved its turnaround and restructuring plan, which includes a government bailout of Rs30,000 crore for the airline by 2020 and a restructuring of debt.
"The turnaround plan of Air India has been approved," civil aviation minister Ajit Singh told reporters after a meeting of the CCEA.
The carrier will hive off two units - transportation and maintenance repair overhaul, the minister said.
At least 7,000 Air India staff will be transferred to its maintenance, repair and overhaul (MRO) subsidiary; while another 12,000 are to be transferred to transportation services. The MRO unit will be able to service aircraft from other airlines as well.
Operational efficiency in terms of on-time performance too is to be increased to 85-90 per cent in two years, from the current 71 per cent.
Singh said restructuring Air India was necessary as the government could not continue to spend public money on it.
.webp)
