SBICAPS appointed to plan Air India revival

SBICAPS appointed to plan Air India revival

New Delhi: Ahead of a high level committee vetting its restructuring plan, government has appointed SBICAPS to prepare a growth plan for the cash-strapped national carrier Air India.

“We have appointed SBICAPS. Soon, we would be getting feedback on what would be the short, medium and long term restructuring required for Air India," civil aviation minister Praful Patel said while speaking at an event on India Aviation 2010 international exhibition in the national capital.

The minister said the national carrier would soon get an organisational restructuring plan and will go under a major transformation in the near future.

“We will be undergoing a major transformation of the management. We will involve lot of important and eminent people on the board of Air India and have an international advisory board as is a practice across the world," Patel said.

“We will be having a chief operations officer (COO), who will be assisting the chairman and managing director, and will run the airline in totality with a good team and this is what is exactly needed in the years to come," he added.

Stressing on the need for Air India to streamline its operations, he said, “I am sure they would want to cut out loss making routes. The government does not get into the business of regulating routes and this is a deregulated sector and applies to the national carrier also."

Patel said the government will not interfere in day to day functioning of the national carrier but Air India will also have to show enthusiasm for its revival.

Speaking on the issue of the carrier’s decision to buy 111 aircrafts, the minister said, “Government did its best to support the initiative from Air India. We didn’t decide what they wanted."