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.
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.