AI board approves asset monetisation, endorses stand on pilots
Air India's board today approved a plan to raise Rs 5,000 crore over 10 years by monetising its assets to repay loans extended to it by the government and it lenders. The board endorsed the sacking of 71 striking pilots.india Updated: May 14, 2012 21:29 IST
Air India's board today approved a plan to raise Rs 5,000 crore over 10 years by monetising its assets to repay loans extended to it by the government and it lenders.
"As per the plan approved by the government, Air India plans to monetise Rs 5,000 crore over 10 years to support its financial restructuring plan at an average of Rs 500 crore per year," a statement from Air India said.
Air India is considering appointing top real estate consultants with wide experience in operating in India and abroad to help monetise its assets, spread all across the country and abroad. It plans to make the appointment by June 30, the statement said.
The board also approved the issue of government-guaranteed non-convertible debentures for Rs 7,400 crore for part repayment of the working capital received from banks.
Taking a serious view of the ongoing pilots' stir, the board endorsed the stand taken by the management in terminating the services of 71 striking pilots and fully supported the view that indiscipline should not be tolerated in any form.
The board reviewed the implementation of the Turnaround Plan but members are understood to have pointed out that the strike and the resultant losses have led to problems in release of funds by the bankers of Air India.
Meanwhile, the Executive Pilots Association, comprising the cockpit crew who are in the management cadre, suggested that the airline should make a suo motu statement before the Supreme Court that the service conditions of the employees of the erstwhile Indian Airlines and Air India would not be altered.
In a statement, the Association also appealed to the management to take back all the sacked pilots and restore the recognition of the Indian Pilots Guild.