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Shubhra Tandon

Mumbai, July 5 The turnaround committee of Air India has begun its agenda of revival on a war footing even as its Chairman and Managing Director, Mr Arvind Jadhav, has warned employees of tough days ahead in a recent communiqué.

On the first day of its meeting on Friday, the committee discussed ways of reducing costs and improving revenues from operations areas, airline sources told Business Line. The 10-hour long marathon session saw presentations made by engineering, operations, stores, flight safety and ground-handling departments.

The discussions revolved around a “strategy to restore pride” of the national carrier and implementation of integration processes. The other issue that was dwelt upon was earmarking potential earnings from strategic business units (ground handling, engineering services and cargo) along with “improved work methods leading to substantial cost reductions”.

Air India is also keen on charting out a concrete strategy and drawing plans on a six, 12 and 18-month basis.

The turnaround committee, which comprises management and union representatives, will keep brainstorming in the coming weeks until a final revival plan is ready for submission to the Government.

Air India has also been asked to ready a comprehensive restructuring proposal by July-end to be submitted to the newly set up Committee of Secretaries (CoS) headed by the Cabinet Secretary and comprising the Finance Secretary, Civil Aviation Ministry and the Principal Secretary to the Prime Minister. This panel will meet every month to review the progress of targets achieved.

Air India is clearly skating on thin ice going by Mr Jadhav’s letter to employees where he has referred to its precarious financial situation. He has urged them to understand that the airline’s needs cannot be met endlessly through loans either. “There could be a possibility of stoppage of financial support,” he has warned.

“We need to return Rs 4,000 crore to the bankers in the coming month and take a fresh loan to meet our commitments. However, it is extremely difficult to get fresh loans,” he said in a letter dated July 2. “There can be no escape from harsh realities. We also need to make a choice between austerity and oblivion,” he added.

He also reiterated that the management is “examining salary disbursement to employees in the lowest grades at the earliest possible date given their financial conditions so as to mitigate their personal hardships”, despite the difficult position.

A section of the lower grade employees, however, stayed away from it, disgruntled by the fact that their salaries did not come on Friday as promised last week.

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