Thursday, 3 January 2013

Panel to suggest cost-cutting measures for Air India


New Delhi, Jan. 3:  
A five-member committee headed by Ravindra H. Dholakia from IIM-Ahmedabad has been constituted to suggest measures for cost-cutting and optimal utilisation of assets of Air India. The committee has been asked to submit its report in two months and also give immediate and interim recommendations that can be implemented immediately.
The Committee’s terms of reference include analysis of all ‘heads of expenses’ of the airline in light of best practices adopted by various airlines globally.
It will also examine various measures adopted by other airlines globally, which have successfully completed a turnaround plan. The Committee will also identify loopholes in the existing structure and functioning of Air India leading to wasteful expenditure, apart from suggesting measures to plug such loopholes.
It will also analyse various cost components and identify those expenses and costs that can be abolished immediately, or reduced in phases or curtailed after sometime in the future.
Rajesh Agrawal, Director Finance, ICRISAT, Hyderabad is also a member of the committee which includes officials of the Ministry of Civil Aviation and a former Director of the airline.
http://www.thehindubusinessline.com/todays-paper/tp-marketing/panel-to-suggest-costcutting-measures-for-air-india/article4270391.ece

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