New Delhi: National carrier Air India Ltd has set up a committee to recommend a revival programme after the government said that any state rescue would be accompanied by restructuring and cost-cutting conditions.
The panel, comprising management and union representatives, was set up after meetings between Arvind Jadhav, chairman and managing director, and the unions, the airline said in a release on Thursday.
The union representatives have been asked to make presentations identifying areas where savings can be effected, said the carrier, struggling to cope with a drop in air travel and losses of Rs5,000 crore last year. “Air India will have to give us a time-bound programme that will involve financial and manpower restructuring,” civil aviation minister Praful Patel said in New Delhi on Wednesday. “The government’s rescue measures will have to be matched by extraordinary measures on the part of Air India.” The carrier has delayed June salaries to 31,000 employees by two weeks as it’s running short of cash. The airline has asked top executives to forego salaries in July to help overcome the cash crunch.
Air India will have to submit the restructuring plan in a month to a panel of government officials. Once government approves the plan, the panel will periodically review Air India’ progress.