<p>Ravi was briefed by top officials about steps taken by the ailing national carrier on financial restructuring after the government infused additional equity of Rs 1,200 crore in December, official sources said.<br /><br />Air India, which has accumulated losses over Rs 5,500 crore, is likely to seek another Rs 2,000 crore worth of equity infusion in the next financial year and the proposal may form part of the Union Budget, they said.<br /><br />The Minister is understood to have reviewed the progress in implementation of the various cost-cutting measures, ranging from the upkeep of its lounges and ground handling to crew shortage.<br /><br />Besides its financial performance, the airline officials are understood to have also raised the contentious issue of wage rationalisation of over 26,000 employees. However, what transpired on the subject could not be ascertained.<br /><br />The situation facing Air India Express and its decision to shift its headquarters to Thiruvananthapuram also came up for a review.<br /><br />Sources said the financial restructuring plan prepared by consultancy firm Deloitte Touche Tohmatsu India Limited was also scrutinised at the meeting, which was attended by all top airline officials, including Air India CMD Arvind Jadhav and Chief Operating Officer Gustav Baldauf.<br /><br />Air India has been trying to find ways to lower interest rate on this loan by at least two per cent by securing government guaranteed convertible bonds, an issue on which the Finance Ministry is likely to take a final decision.<br /><br />The airline has also to brief the Board for Reconstruction of Public Sector Enterprises (BRPSE) to justify its claims for government funding. Incidentally, the BRPSE falls under the Heavy Industries and Public Enterprises Ministry which is now headed by former Civil Aviation Minister Praful Patel.<br /><br />A presentation was also made on the progress in making the airline's Strategic Business Units functional, the sources said. The SBUs would be separate profit centres which would independently handle activities like ground handling, maintenance, repair and overhaul, and engineering.<br /><br />The airline, on its part, has maintained that it has posted an operating surplus for the second month in a row with flights to 106 out of 179 destinations registering cash profit in December. It registered Rs 49.48 crore worth of operating surplus as against Rs 21.66 crore in November.</p>
<p>Ravi was briefed by top officials about steps taken by the ailing national carrier on financial restructuring after the government infused additional equity of Rs 1,200 crore in December, official sources said.<br /><br />Air India, which has accumulated losses over Rs 5,500 crore, is likely to seek another Rs 2,000 crore worth of equity infusion in the next financial year and the proposal may form part of the Union Budget, they said.<br /><br />The Minister is understood to have reviewed the progress in implementation of the various cost-cutting measures, ranging from the upkeep of its lounges and ground handling to crew shortage.<br /><br />Besides its financial performance, the airline officials are understood to have also raised the contentious issue of wage rationalisation of over 26,000 employees. However, what transpired on the subject could not be ascertained.<br /><br />The situation facing Air India Express and its decision to shift its headquarters to Thiruvananthapuram also came up for a review.<br /><br />Sources said the financial restructuring plan prepared by consultancy firm Deloitte Touche Tohmatsu India Limited was also scrutinised at the meeting, which was attended by all top airline officials, including Air India CMD Arvind Jadhav and Chief Operating Officer Gustav Baldauf.<br /><br />Air India has been trying to find ways to lower interest rate on this loan by at least two per cent by securing government guaranteed convertible bonds, an issue on which the Finance Ministry is likely to take a final decision.<br /><br />The airline has also to brief the Board for Reconstruction of Public Sector Enterprises (BRPSE) to justify its claims for government funding. Incidentally, the BRPSE falls under the Heavy Industries and Public Enterprises Ministry which is now headed by former Civil Aviation Minister Praful Patel.<br /><br />A presentation was also made on the progress in making the airline's Strategic Business Units functional, the sources said. The SBUs would be separate profit centres which would independently handle activities like ground handling, maintenance, repair and overhaul, and engineering.<br /><br />The airline, on its part, has maintained that it has posted an operating surplus for the second month in a row with flights to 106 out of 179 destinations registering cash profit in December. It registered Rs 49.48 crore worth of operating surplus as against Rs 21.66 crore in November.</p>