Thursday, February 17, 2011

Air India to seek 10k cr equity support to tide over crisis: Ravi

MUMBAI: The cash-strapped national carrier, Air India, will seek more than 10,000 crore as equity aid to tide more than its financial crisis and turnaround operations, stated the civil aviation minister Vayalar Ravi. "I am looking at a holistic process and not a piecemeal product to problems," he stated in Mumbai after a meeting with Air India unions.

Ravi , who met the finance minister on Wednesday using a request to include 2,000 crore equity infusion package inside the forth coming budget, stated the choice to raise more than 10,000 crore inside the government was taken at a recent review meeting.

He also stated that there will be a review on management claim that 65% from the turnaround plan were implemented.

Management and unions ought to occur forward to lessen the financial concerns and less-than-satisfactory operational performance of Air India, the minister said. He was in Mumbai to meet the trade unions to consume stock from the issues that confront the ailing airline.

The minister met representatives of some unions on Wednesday and others are slated to meet him on Thursday.

"Three main issues have emerged after the talks with employees, 1 could be the dilemma of differential salaries (between employees of erstwhile Air India and Indian) as well as the reduction of profitable routes from the airline as well as the integration of human resource inside the organisation is yet to consume place," stated Ravi.

The pilot unions of each Air India and erstwhile Indian met up from the minister. Although the Indian Airlines union will meet him once more with grievances, the Indian Pilots' Guild of Air India apprised him of differential treatment in comparison to expats and salary issues and mistreatment in between other issues faced by them.

Other unions that met him were the Indian Airlines Officers Association (2,500 members), Indian Airlines Technical Association (3,500 members) and Air India Aircraft Engineers' Association. All the unions wanted to know the financial viability from the airline as well as the plan for equity infusion.
Source: Economic Times

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