The Indian government has prepared a revival plan for Air India that provides for a comprehensive financial package, differentiated strategies for each of the airline's core businesses and robust organisational reforms. Civil Aviation Minister Jayant Sinha said various initiatives to turnaround the national carrier, which is staying afloat on a bailout package extended by the previous government, including monetisation of real estate assets are progressing. Addressing the Lok Sabha, he said the government has prepared a revival plan for Air India which focuses on building a competitive and profitable airline group.
The plan include a comprehensive financial package, including transfer of non-core debt and assets to a special purpose vehicle (SPV), implementation of a 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. Sinha said, “Higher levels of operational efficiency by strengthening management and implementing best business processes,” are among the major elements of the plan. The Union Minister also said that Air India has planned to monetise its unutilised and surplus immovable real estate assets over the next few years. “Till date, Air India has realised an amount of £41 million through sale of its non-core assets in various cities in India and abroad. Air India has also realised a rental income of £31.4 million approximately.”
