PMO seeks health report from Air India
Prime Ministers office has sought specific information from the national carrier on whether or not Air India can survive without financial assistance of the government.
The government was keenly looking at the performance of the national carrier for some time now was known to all. And now a letter written by the PMO to CMD Air India has surfaced. In the letter dated February 25 2015, the Prime Ministers office has sought specific information from the national carrier on whether or not Air India can survive without financial assistance of the government. The letter has put in some specific questions regarding the health of the airline. Headlines Today has a copy of the letter.
Air India has been asked to provide details of the business model that it is following along with the details of the projected cash flows in the next five years. Further, the letter has sought reasons on why the national carrier wasnt able to make profits in the past. Furthermore it also asks details about the market share also adding whether there has been any change in the business scenario. Details have been sought from
1. Air India Ltd
2. Air India Charters Ltd
3. Airline Allied Services Ltd
4. Air India Air Transport Services ltd
5. Hotel Corporation of India Ltd
Sources say that Air India has replied to the letter. Management officials on condition of anonymity say that the airline could break even if there was a guarantee that the present debt would be taken care of.
Employees on the other hand say that the government is well aware of the financial condition of the airline and also knows how the bilaterals were given away and how the aircraft purchasing went in the past.
AI CMD did not respond to our query.