New Delhi: As the government begins the process of turning around the financially distressed national carrier, Air India, NDTV has learnt that Tata Sons chairman Ratan Tata has agreed to join the airline's new international advisory board.
Sources also said that Sam Pitroda, the chairman of National Knowledge Commission, and S Ramadorai, chief executive officer and managing director of TCS, will also be on the independent board of the airline.
Wipro chief Azim Premji may also be approached to join the board.
In an exclusive interview to NDTV, Civil Aviation Minister Praful Patel said Air India would benefit from the presence of eminent people on its board. He also said the bailout for the airline will cost over Rs 4,000 crore.
At the airline, which is in the midst of a restructuring process, the first heads to roll would be the top management, not the staff, the minister said.
The management of the cash-strapped airline had earlier announced that due to the liquidity crunch it would defer the payment of salaries, and wages for the month of June of the around 30,000 employees by a fortnight. The management had also asked the airline's top brass not to take their July salary.
PTI adds: Air India is in the process of having a seven-member international advisory board, with former top officials of global carriers, to turn the organisation around.
The Board may have former heads of leading carriers like Lufthansa and Singapore Airlines, sources in the know said.
Discussions are on to finalise the names of other members on this global advisory board, sources said, adding that an advertisement would soon be issued for the newly-created post of Chief Operating Officer so that a professional airline manager works under Chairman cum Managing Director Arvind Jadhav to improve AI's operations.
Hectic activity is on at the national carrier's headquarters for preparing a comprehensive financial
restructuring plan, which is to be submitted to the government in the next few weeks. AI's losses mounted to about Rs 5,000 crore in 2008-09.
The plan would be vetted by a high-level committee headed by Cabinet Secretary K M Chandrasekhar, which would be monitoring each month the steps taken by the airline to cut
cost and enhance revenue generation.
As part of the restructuring strategy, a separate plan is being prepared for the return of Air India's leased aircraft at the earliest. A team has been set up to work on the lease contracts, the sources said.
This is apart from the ongoing review of its fleet acquisition plan which is likely to be "redrawn", they said.
Air India has till date inducted 49 planes out of its order for 111 aircraft at an estimated cost of Rs 10,000 crore.
As part of its plans, Air India will close its offices at overseas locations where it does not operate.
Heads of strategic units concerning cargo, MRO and other related businesses are also finalising similar plan. Action plans are being drawn up for determining the deliverables in the next six months, 12 months and 18 months.
Plans for leveraging of Air India's properties and real estate assets are also being prepared, they said.
Regarding "partial disinvestment" of the state-owned carrier, the sources said this would happen only after the company full turnaround, which is being targeted in the next 24 months.
The airline could issue an initial public offer when its financial position as well as the stock market stabilised, Civil Aviation Minister Praful Patel said.
Its borrowings have risen steeply from Rs 6,550 crore in November 2007 to Rs 15,241 crore last month largely due to debt servicing for purchase of new aircraft.