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

Mumbai civil body refutes allegations of scam in tenement scheme

The BrihanMumbai municipal corporation (BMC) has rejected the Congress accusations of financial irregularities worth Rs 8,000 crore—9,000 croe in awarding contracts for getting project-affected people (PAP) tenements on private land.    BMC has said that it implements vital p

Sedition law: Can it have a place in democracy?

Does the concept of sedition have a place in modern democracies? This question became more relevant when the apex court recently put the country`s colonial-era sedition law on abeyance stating that there is a “requirement to balance… security interests and integrity of the State… and th

Not just another Manto anthology

The Collected Stories of Saadat Hasan Manto: Volume 1: Bombay and Poona Translated by Nasreen Rehman Aleph Book Company, 548 pages, Rs 999 There are writers, there are writers’ writers, and then there are readers’ writers. Saadat Hasan Mant

These tribal women may be illiterate but are successful entrepreneurs

Meet Promila Krishna, 39, Lalita Nayak, 40, Parbati Gadba, 42, Sanadei Dhuruwa, 39, and Nabita Barika, 41, of Kundra block in Odisha’s Koraput district. Except for Promila who is a matriculate, others haven’t attended school beyond the elementary level. However, while introducing themselves to

Women in workforce: Despite policy support, why it is declining

Michelle Obama once said, “No country can ever truly flourish if it stifles the potential of its women and deprives itself of the contributions of half of its citizens.” That should be so obvious, but it is not, and countries keep depriving themselves of the contributions of half of their popul

Chintan Shivir 2022: Will Congress regain its lost mojo?

The Congress is scheduled to hold a Chintan Shivir (meaning, ‘introspection camp’) from May 13th to 15th in Udaipur and it has identified six specific areas for introspection. These are 1. Political 2. Social Justice and Empowerment 3. Economy 4. Organization 5. Farmers and Agriculture and 6. Y

Visionary Talk: Arvind Sawant, Member of Parliament with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter