Cost cutting: Booz Allen may help Air India

"The board will be held in Mumbai on Thursday and is expected to give its approval to Booz Allen for the cost restructuring plan," a National Aviation Company of India (NACIL) source told PTI.

NACIL is the holding company formed after the merger of Air India and erstwhile Indian Airlines into one single entity.

"Once the Board grants approval, Booz Allen will immediately start work on the cost restructuring plan," the source said.

In October this year, Air India had selected global consultancy firm, Booz Allen, to guide it on its cost rationalisation strategies. Cost restructuring is one part of Air India's turnaround plan.

Air India which posted losses of over Rs 5,000 crore (Rs 50 billion) in the previous fiscal has embarked on a time-bound turnaround plan.

The national air-carrier has a Rs 5,000 crore gap between its revenue and expenditure. The company has targeted a saving of Rs 3,000 crore  (Rs 30 billion) besides a revenue enhancement of Rs 2,000 crore (Rs 20 billion) to bridge the gap.