AI to reap Rs 2,000 crore benefits
Debt-ridden national carrier Air India has commenced a 'cost-cutting ..
Debt-ridden national carrier Air India has commenced a 'cost-cutting and revenue augmentation' plan to garner 'financial benefits' of Rs 2,000 crore per annum. According to Civil Aviation Secretary R.N. Choubey, cost cutting and revenue augmentation plan was recently implemented by the airline. Mr Choubey spoke to reporters on the sidelines of a curtain raiser event for the Global Aviation Summit, which will be held on from January 15-16, 2019 in Mumbai. Subsequently, the plan was presented to an inter-ministerial panel--Air India Specific Alternate Mechanism--which has been formed in November to look after the divestment of the national carrier. Mr Choubey told reporters in New Delhi that the airline will work on 10-12 items under the plan, which if implemented in entirety, is expected to result in financial benefits of Rs 2,000 crore per annum. However, these benefits will be over and above the financial relief that the airline will get by lowered interest payments on its legacy debt.