Management, finances of Air India to be revamped: Patel
A series of initiatives to revamp the top management of the national carrier, Air India and shore up its finances islines up. Patel said the government has appointed SBI caps to suggest a road map for the financial restructuring of Air India
THE MINISTRY of Civil Aviation has lined up a series of initiatives to revamp the top management of the national carrier, Air India and shore up its finances.
"We will bring about transformational changes in the management of the airline from the top," Praful Patel, Minister of State for Civil Aviation, declared on Wednesday (July 22).
Speaking at the launch of India Aviation 2010, the 2nd International Exhibition and Conference on Civil Aviation, being organised by the Ministry of Civil Aviation and FICCI from March 3-7, 2010, at Hyderabad, Patel said, “We will go for the transformation of the management (of Air India) from the top. We will bring in independent directors, have a professional Chief Operating Officer to assist the CMD and appoint an international advisory agency" to turn the airlines around.
Patel said the government has appointed SBI caps to suggest a road map for the financial restructuring of Air India in the short and medium term.
He dismissed the criticism against the government for alleged interference in the day-to-day management of Air India, saying, "there is no regulation, no interference in managing the company." He said, the high cost structure, certain inefficiencies and compulsions of the PSU airline have been engaging the mind of the government and that is why "we feel there is a need to bring about a transformation in the work ethic and ethos of the company."
While the government was doing its bit to put the airlines on an even keel, "we also expect an equal amount of enthusiasm and commitment from within the organization," Patel pointed out.
The Minister said, the government was also committed to taking initiatives to make the Indian skies safer, declaring that the vacancies in ATCs and safety issues would be adequately addressed. "All the backlog of vacancies of ATCOs will be filled," he said.
He said, the government would extend the Mumbai and Delhi airport development models to the 80-odd airports that are currently financially non-viable. "We will continue our efforts to persuade the state governments to reduce the taxation on ATF and urge them to take the lead provided by Andhra Pradesh."
Patel underlined the need for carriers in India to transition from full service carriers to low cost ones. This, he said, would be reflected both in terms of the number of people carried and the operating costs.
The 5-day India Aviation 2010, is being partnered by France and is supported by Airports Authority of India, Directorate General of Civil Aviation, Air India and Pawan Hans Helicopters Ltd. The mega event has USA as the Focus Country and Farnborough International as the Overseas Associate.
Speaking at the launch of India Aviation 2010, the 2nd International Exhibition and Conference on Civil Aviation, being organised by the Ministry of Civil Aviation and FICCI from March 3-7, 2010, at Hyderabad, Patel said, “We will go for the transformation of the management (of Air India) from the top. We will bring in independent directors, have a professional Chief Operating Officer to assist the CMD and appoint an international advisory agency" to turn the airlines around.
Patel said the government has appointed SBI caps to suggest a road map for the financial restructuring of Air India in the short and medium term.
He dismissed the criticism against the government for alleged interference in the day-to-day management of Air India, saying, "there is no regulation, no interference in managing the company." He said, the high cost structure, certain inefficiencies and compulsions of the PSU airline have been engaging the mind of the government and that is why "we feel there is a need to bring about a transformation in the work ethic and ethos of the company."
While the government was doing its bit to put the airlines on an even keel, "we also expect an equal amount of enthusiasm and commitment from within the organization," Patel pointed out.
The Minister said, the government was also committed to taking initiatives to make the Indian skies safer, declaring that the vacancies in ATCs and safety issues would be adequately addressed. "All the backlog of vacancies of ATCOs will be filled," he said.
He said, the government would extend the Mumbai and Delhi airport development models to the 80-odd airports that are currently financially non-viable. "We will continue our efforts to persuade the state governments to reduce the taxation on ATF and urge them to take the lead provided by Andhra Pradesh."
Patel underlined the need for carriers in India to transition from full service carriers to low cost ones. This, he said, would be reflected both in terms of the number of people carried and the operating costs.
The 5-day India Aviation 2010, is being partnered by France and is supported by Airports Authority of India, Directorate General of Civil Aviation, Air India and Pawan Hans Helicopters Ltd. The mega event has USA as the Focus Country and Farnborough International as the Overseas Associate.
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