Tourism / Aviation / Shipping

India hires turnaround expert to fix Air India

25 Aug 2015 - {{hitsCtrl.values.hits}}

REUTERS: India is betting on a former railway bureaucrat who styles himself as “Mr Turnaround” to fix the financial troubles of debt-burdened national carrier Air India, which last made a profit in 2007.

Ashwani Lohani, whose past roles include stints at India’s railways and a regional tourism board, will take over as chairman and managing director next week, an Air India spokesman said.

He has a tough task ahead. Once India’s biggest carrier, Air India’s market share has dropped to about 15 percent amid rising competition from nimbler private sector rivals.

It is sitting on INR500 billion (USD$7.6 billion) of debt and annual interest costs of USD$600 million are hampering investment in its revival.

The airline, which received a USD$5.8 billion government bailout in 2012, is expected to report another operational loss for the 2014-15 fiscal year when it announces its results next month, a senior executive said.

The executive said the continued modernisation of its fleet, a plan to sell property assets worth USD$60 million and lower fuel costs should help the airline return to profitability under the new boss this year.

“We are very upbeat that the trend will continue (under Lohani),” said the executive, who asked not to be named because he was not authorised to speak to the media. “We want to focus on getting the airline back to profitability.”

Lohani describes himself as “Mr Turnaround” on his page on networking site Linkedin, largely for his work boosting tourism in Madhya Pradesh.

Tourism / Aviation / Shipping

India hires turnaround expert to fix Air India

Most Popular Articles

LAUGFS gas prices remain unchanged

CSE slides sharply as Middle East tensions trigger broad-based selling

CSE rebounds as lower oil prices and strong crossings lift sentiment

CSE surges as peace deal optimism sparks broad-based rally

CSE ends week on a soft note as early gains fade amid cautious Friday profit-taking

CSE extends decline as middle east concerns weigh on investor confidence

Latest News

Trump celebrates 80th birthday with Iran deal and UFC cage fight on the White House South Lawn

Horror house publicity stunt goes wrong in Thoduwawa

Sri Lanka Navy launches publication on island’s seafaring glory

Badulla Bar Association urges President not to increase retirement age of Superior Court Judges

No more paddy cultivation unless prices are increased, farmers warn