Govt looking for new joint MD to steer AI revival

Air India has had two joint MDs since its merger with Indian Airlines in 2007, but the position is lying vacant since 2014

GN Bureau | September 20, 2016


#Air India   #revival   #joint MD   #Indian Airlines   #debt restructuring   #Narendra Modi  

 The government is seeking to hire a new joint managing director to steer Air India Ltd’s turnaround and debt restructuring plan.

 
According to a news report published in the Mint, the appointments committee of the cabinet (ACC), which is headed by prime minister Narendra Modi, has asked the aviation ministry to fill the position. It is vacant since 2014.
 
Air India has had two joint managing directors (MD) since its merger with Indian Airlines in 2007. Bureaucrat Vishwapati Trivedi was the first one to serve as joint MD. Syed Nasir Ali, an Indian Revenue Service officer deputed to the aviation ministry, served as joint managing director from 2012 to 2014. His tenure was not extended and since then the position has been vacant. The government has started the process to fill the position with someone who can be the eyes and ears of the government and help with the turnaround process, the news report added.
 
Air India is weighed down by debt of Rs 51,367 crore, because of purchase of new planes and working capital loans. In 2012, the airline secured a bailout package from the government. It included Rs 30,000 crore in equity infusion spread over 10 years and it was allowed to draw an average Rs 3,000 crore every year.
 
While the huge drop in the fuel price has helped the national carrier to make some operational profit. The government wants to find ways to reduce the debt of the airline further. This includes nearly Rs 28,000 crore owed to state-owned banks.
 

Comments

 

Other News

Stories to read over the weekend

At one time these pale rooms of the Delhi commission for women looked like sleepy corners of officialdom; they are now best described as a bustling sarkari office. The woman who transformed this moribund organisation hardly looks like a powerful leader. Dressed in casual blue jeans and loose deni

Tata Trusts, PFA to build state-of-the-art veterinary hospital

Tata Trusts and People For Animals (PFA) announced their collaboration to build a state-of-the-art, multi-specialty veterinary hospital and emergency clinic at Navi Mumbai to serve the needs of all domestic and farm animals at affordable rates.   The hospital will be built in Kala

The shot just got smarter

A long queue of women, infants in their arms, extends outside the immunisation room at the community health centre (CHC) in Bhangel village, Noida, a pink double-storey building beside a bustling market. Unmindful of the chit-chatting and baby babble, Mariamma Samuel, an auxiliary nurse-cum-midwi

Do you think fugitive industrialist Vijay Mallya will be extradited from Britain to India?

Do you think fugitive industrialist Vijay Mallya will be extradited from Britain to India?

Reform first, privatise later: Bibek Debroy to railways

Before privatisation and corporatisation, the Indian Railways need to undertake major reforms including commercial accounting, decentralisation and human resource among others, said Bibek Debroy, economist and member, NITI Aayog at Railways Reforms and Governance Conclave organised by Governance Now on Fri

NTPC plans for 32 GW installed capacity via renewable sources

NTPC Ltd has raised Rs 2,000 crore through green masala bonds in overseas market under its $4 billion medium term note programme, union minister Piyush Goyal informed the Lok Sabha. The proceeds of these bonds will be used for financing renewable energy projects in accordance with applicable

Video

हमेशा रहें चुनाव के लिए तैयार - मोदी ने कहा सांसदों से

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter