Air India seeks to cut costs ahead of privatisation
Air India is seeking to reduce costs and lower its dependence on the government by cutting debt and aircraft leases/rentals and trimming staff and operational expenditure, chairman and managing director Rajiv Bansal said on Thursday.
The cost-cutting drive dovetails with a government plan to sell its entire stake in Air India amid increasing debt and mounting losses. The Centre, in January, started the process by releasing an information document for investors and offering access to financial and other data of Air India and its subsidiaries.
The government’s entire stake in Air India, its 100% stake in low-cost subsidiary Air India Express Ltd. and 50% stake in ground handling unit Air India SATS Airport Services Private Limited. are on offer.
