Civil Aviation Minister Ajit Singh on Thursday spelt out a plan for turning around debt-ridden national carrier Air India The plan envisages a massive fund infusion into the airline, debt restructuring, and higher operational efficiency. Here are 10 things about the turnaround plan you need to know:
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1. The Union Cabinet on Thursday approved a turnaround plan for struggling national carrier Air India. The plan will rationalize its operations and restructure its debt.
2. The government will inject Rs30,000 crore into the airline by 2020.
3. It may also consider a minor stake sale but will continue to be the majority stakeholder. However, Singh added that the government cannot continue to use public money to run Air India
4. Twenty seven Dreamliners will be inducted into the Air India fleet as scheduled, Singh said,
5. At least 7,000 Air India staff will be transferred to its maintenance, repair and overhaul (MRO) subsidiary.
6. Another 12,000 staff be transferred to transportation services,
7. The MRO unit will be able to service aircrafts from other airlines as well
8. A proposal to allow investment by foreign airlines in domestic airlines will go to the Cabinet very soon
9. Operational efficiency in terms of on-time performance to be increased to 85-90 per cent, in two years, from the current 71 per cent.
10. Air India currently has outstanding loans and dues worth Rs 67,520 crore.
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