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Prabhu bets on global professionals to steer AI

By IndianMandarins- 31 Dec 2018
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Civil Aviation Minister Suresh Prabhu has said globally-reputed professionals may be appointed in Air India's top slots to revive the chronically sick airline. For this purpose, a search committee may be set up. Currently, the national carrier—which is staying afloat on taxpayers' money—has nine members on the board, including two officials from the civil aviation ministry.

 

The chairman and managing director is a senior Indian Administrative Service officer Pradeep Singh Kharola while two well-known businessmen—ITC Chairman YC Deveshwar and Aditya Birla Group Chairman Kumar Mangalam Birla—are independent directors on the board. Ravinder Kumar Tyagi, Syed Zafar Islam, Daggubati Purandeswari are the other independent directors.

 

Air India Director (Finance) Vinod Hejmadi, as well as Civil Aviation Ministry's Additional Secretary Gargi Kaul and Joint Secretary Satyendra Kumar Mishra, are also part of the board.

 

Prabhu said debt is one of the biggest problems for the revival of Air India, adding that the civil aviation ministry is already working with the finance ministry to address the issue. The carrier is estimated to have a debt burden of over Rs 55,000 crore and about Rs 29,000 crore is to be transferred into a special purpose vehicle.

 

On Dec. 27, the Civil Aviation Ministry told the Lok Sabha that the government has prepared a revival plan for Air India.

 

A comprehensive financial package, including the transfer of non-core debt and assets to a special purpose vehicle, implementation of robust organisational and governance reforms by the board and differentiated business strategies for each of the core businesses of Air India are part of the plan.

 

"Higher levels of operational efficiency by strengthening management and implementing best business processes" are among the major elements of the plan.

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