Air India Board to meet on Thursday

Cash-strapped Air India's Board is meeting in Mumbai on Thursday to discuss its rejuvenation programme as the 30-day deadline, given to it by the government, comes to a close

Cash-strapped Air India's Board is meeting in Mumbai on Thursday to discuss its rejuvenation programme as the 30-day deadline, given to it by the government, comes to a close.

HT Image

"Recent developments will top the meeting agenda. Our Chairman and Managing Director (Arvind Jadhav) will also apprise the Board members of the several initiatives taken by the management to cut costs and usher in efficiency," Air India sources said in new Delhi on Wednesday.

After a meeting Civil Aviation Minister Praful Patel and top Ministry and airline officials had with Prime Minister Manmohan Singh on June 24, Air India was asked to come up with a detailed restructuring plan within a month and submit it to a Committee of Secretaries headed by Cabinet Secretary K M Chandrasekhar.

This panel would meet once every month to closely monitor the cost-cutting measures being undertaken by the airline.

With Air India's losses likely to be around Rs 5,300-crore in FY 2009 and working capital borrowings at around Rs 16,500-crore, the state-run airline is looking for the government succour to wriggle out of its financial mess.

The management's request for urgent intervention from the government to help it tide over the present financial crisis will also figure prominently in tomorrow's meeting, the sources said.