Loss-making national air carrier Air India has appointed global consultancy firm Deloitte to ratify a prospective financial restructuring plan for the company, which was prepared by SBI Caps, a source said. "Air India has appointed Deloitte to assess the SBI Caps -prepared financial restructuring plan. The firm will be paid a fee of Rs 25 lakh for this job," the source told PTI.
The overseas firm has been given one week to 10 days' time to complete the exercise, the source said. When contacted, Air India confirmed that Deloitte has been hired to vet the SBI Cap report, but did not divulge any details on the proposal.
"Deloitte has been appointed mainly to vet the business plan as an independent aviation consultant before submitting our restructuring plan to the Reserve Bank," an Air India spokesperson said.
A Deloitte spokesperson refused to comment on the deal, citing confidentiality and contractual obligations. Air India is saddled with a total debt burden of about Rs 40,000 crore (Rs 400 billion). It suffered a loss of Rs 5,551 crore (Rs 55.51 billion) in FY'10.
