STOCK MARKET BSE NSE

Air India to shed excess flab

Task cut out for new secy to decide on VRS plan for 5,000

Published: 04th August 2012 10:19 AM  |   Last Updated: 04th August 2012 10:19 AM   |  A+A-

The Air India turnaround plan is going to be the biggest challenge for Aviation Secretary  K N Srivastava who recently took over the portfolio from his predecessor Nasim Zaidi.

Just a few days into the job, Srivastava is already treading the tough road ahead. With no real leeway in Air India, the new secretary took stock of the situation and will be instrumental in effecting key decisions about the carrier.

Air India is all set to implement a massive voluntary retirement scheme (VRS) which will be imposed on 5,000 employees of the national carrier.

Experts say that such a move will be suicidal for the airline as the best and most experienced hands will move out leaving the company with non-performers. Faced with such conflicting views, Srivastava has to now decide the right move.

On Zaidi’s last day at work, the Civil Aviation Safety Advisory Council (CASAC) was revived with limited members and a specific clause to act on the highlighted deficiencies by the expert group.

“We hope our suggestions will be taken seriously this time and the council is more result oriented,” said Capt Mohan Ranganathan who will be a part of the core group. Srivastava will have the onerous task of ensuring that CASAC this time makes some positive impact on aviation.

The new secretary is expected to take a full-fledged meeting of CASAC members later this month which will involve representatives of the airlines, airports, general aviation and helicopters. The ministry is also considering new regulations on fuel and ticket prices which Srivastava is studying for effective implementation.

“Zaidi had set a high benchmark with the number of policies he brought about during his tenure. The new secretary will have to live up them,” said a ministry official.

Stay up to date on all the latest Business news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp