Air India must deliver restructure plan before fresh funding is given - GoM
Indian Civil Aviation Minister, Praful Patel, stated the Group of Ministers (GoM) on Civil Aviation did not take any decision on an equity infusion into Air India and stated the carrier would first need to develop a “substantial” and “workable” restructuring plan (IANS, 22-Oct-2009). The Committee of Secretaries last month approved a three-year USD1.1 billion package for the airline, with a condition that the airline would cut costs and raise its revenue. The airline is reportedly generating cash losses of USD86 million per month at present.
Indian Government: “No decision has been taken by the GoM. Unless employees of Air India come out with a workable plan for cost cutting and revenue enhancement, the government cannot offer any help. The unions and management must cooperate to work out a solution. We are also awaiting inputs from our consultants," Praful Patel, Civil Aviation Minister. Source: IANS, 22-Oct-2009.