A group of ministers has outlined some measures to establish two sub-committees, in order to revive Air India restructuring plans along with an analysis of its Rs 1,100-crore bill for VVIP and evacuation flights. The Sub-committee will constitute the representatives of the planning commission, finance ministry as well as civil aviation ministry to make an opinion on the airline’s turnaround plan

The policy was shaped during a GoM meeting on Wednesday, in presence of Finance Minister Pranab Mukherjee, Petroleum Minister Jaipal Reddy and Civil Aviation Minister Vayalar Ravi. The meeting had a focus on the financial crisis where the airline is not in a state to pay its creditors as well as 30,000 employees.

The airline has forwarded a demand of Rs. 350 crore for operating the flights, Rs 800 crore to clear the employee salaries and maintenance of the Boeing 747 planes, used for VVIP flights.

"In the last two years, the market has witnessed a double-digit growth. While other airlines managed to cash in on the rising number of traffic, Air India has not seen any surge in numbers. This is because the entire emphasis is on financial restructuring rather than upgrading the product through innovative marketing strategies”, notified the former Executive Director of Air India, Jitendra Bhargava.