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A-I board gives final shape to business plan

The Air-India board on Wednesday gave a final shape to a new business plan which includes proposals to renew its ageing fleet and introduction of a revised voluntary retirement scheme, besides giving a go ahead to its preparations for carry almost a quarter of 70,000 Haj pilgrims to Saudi Arabia early next year.

The business plan takes into account stalling of the divestment process due to sole bidder Tata Sons' inability to find a foreign strategic partner, as also the global slowdown in the aviation industry following the September 11 terror strikes.

Talking about the business plan, civil aviation ministry sources stated that the airline was working on a long- and medium-term strategies, primarily to enhance its profitability and improve productivity.

The plan includes acquisition of aircraft and phasing out of the aged ones, launching new routes, a revised voluntary retirement scheme for its employees, closing of off-line stations and a large number of other cost-cutting measures.

The sources, however, said the policy decisions in the business plan would have to be okayed by the government.

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