INDIA’S aviation minister pledged yesterday to carry out "transformational changes" at the loss-making state-run carrier Air India to turn around its finances.
The airline, known for its turbanned maharaja mascot, faces a financial crisis after posting an estimated loss of $1bn (£604,861) for the financial year ended March 31 and is hoping for a government rescue package.
"We will bring about transformational changes in the management of the airline from the top," Praful Patel, minister of state for civil aviation, said in New Delhi.
"Air India will be restructured financially, organisationally," Patel said at an aviation industry conference.
"I am very sure it will start making profits soon," he said.
Patel’s statements came a day after he met India’s Prime Minister Dr Manmohan Singh to discuss the financial issues facing the airline.
Air India is seeking a Rs39.81bn ($820m/£496m) bailout package from the government.
"We will go for the transformation of the management (of Air India) from the top," Patel said.
"We will bring in independent (board) directors, have a professional chief operating officer and appoint an international advisory agency" to turn the airline around, he said.
Patel added that there was only so much the government could do to help the cash-strapped carrier and said the airline would have to alter its work culture.
"There is a need to bring about a transformation in the work ethic and ethos of the company," he said.
High fuel prices, a drop in passenger numbers and the global economic slowdown have pushed Air India deep into the red.
The airline has asked its top managers to forgo one month’s salary as part of efforts to survive the crisis.
