The Hindu Business Line : Air India will come out of the red soon: Raghu Menon

Mumbai, April 1 Mr Raghu Menon, who took charge as Chairman and Managing Director of National Aviation Company of India Ltd, which runs Air India, is bullish on the prospects of the airline coming out of the red early, despite the current uncertain economic environment.

High on Mr Menon’s agenda are plans to improve the airline’s financials by raising the load factor and cutting costs. To this end, he would look at route rationalisation both in domestic and international sectors and improve the level of services.

Air India incurred a net loss of Rs 447.93 crore and Indian Airlines reported a net loss of Rs 240.29 crore during 2006-07.

Mr Menon, who was with the Civil Aviation Ministry, for the last three years, has ruled out the possibility of the airline going in for an IPO in the near future. But, if necessary, he would make out a case and approach the Government for infusion of capital, he told presspersons immediately after taking charge at the Air India headquarters in Mumbai this morning.

“Customer is the king or queen,” was the message from the new chief to the passengers of the national carrier. On-time performance would be the most important factor and customers would be the core of all the activities henceforth, he said.

Mr Menon said there are certain issues related to the integration of Air India and Indian airlines which need to be resolved. “These are issues that can be resolved. It is not only related to human resource but there are lots of other integration issues including operational synergies. Of course, a lot has been done by my predecessor, remaining I think we should be able to do.”

Interestingly, addressing the employees, he said “I would like to assure them (employees) that as far I am concerned, I come with no baggage of either being a part of erstwhile Indian or Air India and I am more than willing to talk to all the employees directly or through the unions and see that their problems are resolved to the extent possible.”

Human resource integration is one of the biggest issues that confront the merged entity. There has been a widespread discomfort and apprehension amongst the employees of erstwhile Air India and Indian Airlines related to their promotions, wages and other such issues post merger. The employees had also gone on strikes and approached the Delhi High Court against the merger.