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Nacil asks 6 directors to prepare turnaround plan for ailing airline

Nacil asks 6 directors to prepare turnaround plan for ailing airline
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First Published: Thu, Jul 09 2009. 12 22 AM IST
Updated: Thu, Jul 09 2009. 12 22 AM IST
Mumbai: National Aviation Co. of India Ltd (Nacil), which operates Air India, on Wednesday asked six of its nine serving directors to prepare a turnaround plan for the ailing airline. The carrier is expecting to post a loss of about Rs5,000 crore for the year 2008-09. In a circular issued on Wednesday, Nacil reallocated the work responsibilities of at least six directors to focus them on the turnaround plan.
A senior Nacil executive confirmed the development. At least two directors told Mint they have received the circular.
The circular said that the airline is facing severe financial crunch and that these directors should prepare a turnaround plan that will be vetted by a financial consultant and the top management.
The airline’s borrowing has risen from Rs6,550 crore in November 2007 to Rs15,241 crore in June 2009.
“On the face (of it), it is reallocating some responsibilities to prepare (a) turnaround plan. But on a closer look, one can make it out that powers of select directors are curtailed,” another senior Nacil executive said.
The circular comes at a time when civil aviation minister Praful Patel has warned of heads rolling at Air India and of major changes in the top management.
The six directors include Amod Sharma, head of strategic business unit (SBU) and related business; Anup K. Srivastava, director of personnel; Anita Khurana, SBU head for cargo; Vipin K. Sharma, SBU head of maintenance, repair and overhaul of engines, and components; K.M. Unni, SBU head of maintenance, repair and overhaul of airframe; and S. Chandrasekhar, director of finance.
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First Published: Thu, Jul 09 2009. 12 22 AM IST
More Topics: Nacil | Airline | Praful Patel | Air India | Directors |