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No job cuts in Air India, reiterates Patel

By BS Reporter in Chennai
July 06, 2009 10:35 IST
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Civil aviation minister Praful Patel has again ruled out any job cuts in Air India, the state-run airline which needs a cash infusion to continue.

Speaking to reporters after inaugurating a Rs 50-crore (Rs 500-million) aviation turbine fuel pipeline of Indian Oil Corporation from Manali to Chennai, the minister said: "Air India will not sack employees but financial and organisational restructuring is on the cards."

The plan, he said, will commence in the next 30 days. Terming the current period as a tough one, the minister said, "It is time to cooperate with each other to build a strong national carrier."

The borrowings of Air India rose to Rs 15,241 crore (Rs 152.41 billion) in June this year from Rs 6,550 crore (Rs 65.5 billion) in November 2007.

They have gone up due to servicing of debt due to purchase of new aircraft and operating losses, which have compounded due to the present economic recession and the high oil prices last year.

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BS Reporter in Chennai
Source: source

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