Indian Airlines board on Wednesday set in motion the process of acquisition of new aircraft by deciding to obtain revised financial bids for the purpose by as early as December 21, official sources said Wednesday night.
Government had advised the IA not to go ahead with this process in April and August last year as the disinvestment process was going on then.
IA had already completed a techno-economic evaluation for acquiring the new aircraft and kept it in a sealed cover since March this year.
The board at Wednesday’s meeting also decided to obtain better lease rental for six 50-seater atr-42 aircraft for operations by IA's wholly-owned subsidiary, Alliance Air, the sources said. The meeting was also informed about the major cost-cutting exercise being carried out by the IA, including curbing avoidable overtime, casual employment, rationalisation of aircraft capacity deployment, closure of booking offices and rationalisation of working hours.
The estimated savings on this account could be around Rs 50 crore per annum, the board was informed.
Bureau Report