New Delhi: Air India is on the path of strong recovery. This was revealed by Union Minister of State for Civil Aviation Praful Patel on Sunday, who said that figures show a strong rebound for the national carrier.
He also announced that there would be no job cuts and wage cuts in Air India.
Patel made this announcement after Air India CMD Arvind Jadhav and his team made a presentation on the plan for financial restructuring of the national carrier before the board and independent directors today.
The new turnaround plan focused on restructuring the company's debt and streamlining its expenses.
To qualify for the second round of equity infusion of Rs 1200 crore from the government this year, the airline must show improved financial health.
Last year, it received Rs 800 crore from the government. The management will have to get the Unions on board before they are able to implement the new turnaround plan.
The financial book of Air India had not shown prospects for quiet sometime now. Till 2009, Air India reported cumulative losses of Rs 8,461 crore.
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