Prime Minister Man Mohan Singh has given Air India 18 months to spruce up its finances, come out the red and report a profit.
In a directive last week, he asked the carrier to close all its offices in cities at home and abroad where it does not fly. Instead, it has been asked to consider low-cost options like roping in associates and direct selling agents in these cities.
“The prime minister will review steps taken by the airline and its performance every six months,’ a PMO official told Financial Chronicle.
The carrier has taken some measures to save capital costs. It has already shut down offices in San Francisco and Oakland; a decision on the Sydney office is yet to be taken. At home, it has shut offices in Gurgaon, Agra and Dehradun.
More may be shut; including the one at Ludhiana.It has dropped the idea of opening an office in Noida.”The company is recalling all its executive directors in overseas offices,” an official of the airline said.
Confirming, the carrier’s spokesperson said, “Offices for which lease agreements have expired have already shut.”
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