Prime Minister Office Seeks a Performance Report and Revival Plan from Air India

Saturday, 21st March 2015 at 02:29am

As concerns over the financial health of the biggest airline carrier in India grow, the Prime Minister Office (PMO) in this country asked the company to provide a detailed financial performance report on its profitability and loses.

In addition, the PMO also wants AI to submit a thorough plan which will see it get out of its current financial situation.

The Prime Minister Office in particular was concerned with the AI's lack of revenue and growing financial burdens and has sent a survey to the company containing such questions.

Furthermore, the airline company was also requested to provide specifics for its turnaround strategy.

"Just a Routine Exercise", AI Officials Say

When asked about the PMO inquiry, one senior official at Air India maintained that this is nothing more than a "routine exercise" and that the company has already answered the queries from the Prime Minister Office.

He further explained:

"The PMO had asked for certain details on our turnaround plan and financial restructuring plan as part of a routine exercise some time back. We have already responded to all the queries."

Debts Mounting at Air India

India's national air travel carrier currently deals with over 40,000 crore rupees debt. It's loses are right now at 38,000 crore Rs. One of the life-lines that the company has right now is a revival plan which will bring around 30,000 crore Rs in equity infusions by 2021-22.

Earlier this week, the company signed an 8 crore Rs contract with the National Institute of Fashion Technology (NIFT) for new uniforms for its 18,000 cabin crew members. This created a wave of protests among its staff. Many of them were concerned that the deal was unnecessarily wasteful particularly having the company's current financial hardships in mind.

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