New Delhi, April 13: Minister of state for civil aviation Praful Patel said Tuesday that “the worst is over for Air India”, and that wage cuts were not a priority. The minister noted that the cash-strapped state-owned unified carrier was now cutting losses by around Rs 100 crores a month and was trying to “impose more efficiency” in implementing cost-cutting measures. The airline, he said, was on the “path to recovery”.
The minister said Rs 800 crores had already been paid as equity from the Centre to Air India, while another Rs 1,200 crores had been earmarked for this fiscal year. Monthly losses were coming down. The airline’s new board was undertaking a comprehensive review of its functioning, adding that all key future decisions would be taken by the board. Air India is also phasing out old aircraft while taking delivery of new aircraft ordered a few years ago.
Mr Patel announced that a new modern integrated terminal T-3 at New Delhi’s Indira Gandhi International Airport, which would serve both domestic and international passengers, would be inaugurated on July 3 in the presence of Prime Minister Manmohan Singh and Congress president Sonia Gandhi. The main runway at the airport was also being recarpeted ahead of the Commonwealth Games in New Delhi in October.
Age Correspondent