Unions back Air India finacial restructing plan

New Delhi, July 26 (IANS) Twelve employees unions of Air India have backed the national carrier’s financial restructing plan, a member of the airline’s board of directors said here Monday.

‘We have received a tremendous response from the unions. They are with the plan and want to see their company do well and rise,’ Amit Mitra, secretary general, Federation of Indian Chambers of Commerce and Industry (FICCI) and an independent director of National Aviation Company of India (NACIL) told IANS.

An Air India team, headed by Chairman and Managing Director Arvind Jadhav, Sunday made a presentation on the plan for financial restructuring and turnaround till 2014-2015 before the board of directors, saying that the airline will break even by 2015.

‘The unions and company both agree that first the losses should be minimised and the restructuring started and then the wage issues can be taken up,’ Mitra added.

Under the restructuring plan, the national carrier will get working capital loans through a mix of bonds guaranteed by the government with longer tenure and bullet payments.

The company may also sell or lease land and building to raise working capital. Apart from this, there will be equity infusion by the government to strengthen the Air India balance sheet.

Civil Aviation Minister Praful Patel Sunday said the government is committed to the national carrier. ‘Infusion of funds is subject to Air India showing that it wants to come out of the problems they are facing.’

He also added that there will be no job or wage cuts.

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