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Air India Board Meeting

Direct News Source

29-Dec-2011 The Air India Board met today in New Delhi to take on record the Director's report for the year ended 31st March 2011.

The Board was briefed on the progress made on the Financial Restructuring Plan of Air India. Following the meeting with the lenders on November 28, 2011, State Bank of India (SBI), as leader of the consortium has approached Reserve Bank of India for certain additional dispensations in the provisioning norms. A cabinet note is being moved by the Ministry of Civil Aviations for the purpose of equity infusion in Air India and for approving the Financial Restructuring Plan.

The Board approved the rearrangement of authorized share capital by issue of preference shares worth Rs 7500 cr which are proposed to be allotted to the lenders of the working capital as part of the Financial Restructuring Plan.

The improvement in the key performance indicators for November 2011 was noted by the Board vis-à-vis November 2010 which are as under :

1. Passenger revenue went up by 12.3%
2. Capacity in ASKM increased by 1.9%
3. Number of passengers carried increased by 7.7%
4. The load factor at domestic services was 74.9% and on international services was 64.1%
5. The yield went up by 10%.The key performance indicators for April to November 2011 have also shown an improvement as compared to the corresponding period of last year in terms of passenger revenue, passenger carried and yield.

The appointment of Mr. Vinod Asthana as Managing Director of Hotel Corporation of India Ltd., was also approved by the Board.