Partner Channels: Bill Pay | Health | IT Education | Jobs | Technology | Travel
June 11, 2001
|
|
|
|
|
|
||
|
Channels: Astrology | Broadband | Contests | E-cards | Money | Movies | Romance | Search | Wedding | Women Partner Channels: Bill Pay | Health | IT Education | Jobs | Technology | Travel |
||
|
|
||
|
Home >
Money > Business Headlines > Report June 11, 2001 |
Feedback
|
|
|
Videocon demands freeze on IA fleet expansionPuja Mehra Indian Airlines' plan to add 10 aircrafts to its fleet may run into rough weather. Videocon International, one of the bidders, has demanded that pending disinvestment, the government should freeze all crucial decisions such as lease and purchase of aircraft by the airline. It has also suspended all workforce related decisions, including recruitment and retrenchments until the new management takes charge. The demand assumes importance as the civil aviation ministry is planning to seek Cabinet approval for a voluntary retirement scheme to reduce workforce in the airline by 1,000 employees shortly. The airline plans to raise market debt to finance the VRS. Indian Airlines, which invited tenders for the dry lease of six 50-seater aircrafts last month, also plans to call for tenders for dry lease of four Airbus A-320s. Explaining the rationale behind the demand, a senior Videocon International executive told Business Standard that such decisions by the incumbent management, just two or three months before the induction of a strategic partner, could affect the future revenue streams and the employee-workforce relation. Though the government has a policy of freezing huge investments in public sector enterprises (PSEs) slated for disinvestment, a concession has been made for companies such as VSNL, where any delay in decisions could result in losses for the company, given the highly competitive nature of services provided by such PSEs. In case of Indian Airlines, however, the government has refused to allow acquisition of new aircrafts due to the ongoing disinvestment process. The airline has not made any addition to its aging fleet since 1987, when it had acquired 31 Airbus A-320s. However, the civil aviation ministry had asked it to dry lease aircrafts instead. Powered by YOU MAY ALSO WANT TO READ:
|
||||
