| Font Size |
"We are broadly looking at equity infusion linked to its monthly performance parameters and we are only looking at till March (2010). This is not the total equity infusion being looked at for Air India," he told reporters after an almost two-hour meeting of a Group of Ministers on the issue.
Based on the national carrier's performance till the end of the financial year, the government would be "able to finally take a call at the end of March as to what will be the final support which the government will provide," he said.
Replying to a question, Patel said Air India "will have to provide a revenue enhancement and a cost-cutting programme to the extent of at least Rs 2,000 crore by March which will be giving a direction on the way forward." The airline, which has shown a net loss of Rs 5,548.26 crore in 2008-09, is seeking a total equity infusion of Rs 5,000 crore.
The GoM, headed by Finance Minister Pranab Mukherjee, was given a presentation on the cash-strapped carrier's plans to reduce costs and enhance savings by CMD Arvind Jadhav and Civil Aviation Secretary M Madhavan Nambiar. The meeting was also attended by Petroleum Minister Murli Deora, Home Minister P Chidambaram and Deputy Chairman of Planning Commission Montek Singh Ahluwalia.
Discuss this story on expressindia forums
|
|
Our country is paying the cost of having a public sector airlines which is surprisingly showing a huge losses despite having government patronage. All government empoyees are supposed to travel either on duty or on LTC only by Air India. Providing equity infusion will not solve the problem. The Goverment has to be strict on this aspect. Then only can we say that the airline is giving service.
EXECUTIVE DIRECTORS ARE SAYING THAT IF THEIR PLI IS REDUCED THEY WILL GET LESS THAN THEIR JUNIORS.---ACTUALLY MANY EDs HAVE SUPERCEDED MANY SENIORS IN THEIR SERVICE SPAN ---THE PERSONS WHO HAVE BEEN SUPERCEDED SHOULD GET MORE REMUNERATION AND THE POINTS RAISED BY EDs ARE NOT CORRECT IN MOST CASES----THERE ARE MANY MANAGERS, DY GENERAL MANAGERS , SENIOR MANAGERS IN AIR INDIA WHO ARE SENIOR TO MANY EXECUTIVE DIRECTORS AND LOGICALLY THEY SHOULD EARN MORE----SOME PERSONS HAVE ALWAYS MANAGED TO GET SUPERFAST PROMOTIONS AND NOW THEY WANT TO BECOME CMD,MD, DY MD ETC------THEY ARE NOT HAPPY WITH ED DESIGNATION-------MOREOVER THESE EXECUTIVE DIRECTORS HAVE FORMED A PARALLEL CENTRE OF POWER AND THEY ARE NOT ALLOWING CMD TO FUNCTION [raising various roadblocks]