A
committee was set up on Thursday to suggest measures to lower the high costs of
Air India’s operations and improve utilisation of resources in line with best
global practices to help the state-run carrier achieve the goals of its
turnaround and financial restructuring plans.
A five-member committee, headed by IIM-Ahmedabad’s Prof Ravindra
H. Dholakia, was set up by Civil Aviation Minister Ajit Singh after a review
meeting of the ailing national carrier’s function- ing.
Though the panel has been given two months to submit its report,
it has been asked to give interim recommendations without waiting for its final
report so that these could be implemented by Air India immediately, an official
spokesperson said.
With improvements in Air India’s performance in recent months,
the airline is likely to end this financial year with a positive cash flow or
earning before interest, taxes, depreciation and amortisation (EBITDA)
positive.
Expressing concern over the projected net shortfall of Rs.404
crore a month, the Minister had recently asked Air India to cut redundant costs
and optimally utilise its resources to meet the annual financial projections
envisaged in the Financial Restructuring Plan (FRP).
Other members of the committee are: Prabhat Kumar, Joint
Secretary in the Ministry; Rajesh Agrawal, Director Finance of ICRISAT; S
Mukherjee, former Director Commercial and Inflight Services of Air India; and
Nasir Ali, Joint Managing Director of the airline.
It would go into the expenses, identify loopholes in the company’s
existing structure and functioning leading to wasteful expenditure and
recommend measures to plug them. — PTI
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