Ajit Singh in New Delhi on Monday. Picture by Prem Singh

New Delhi, Dec. 19: Newly appointed civil aviation minister Ajit Singh will meet Air India officials within this week to review the airline’s rescue plan.

Singh was sworn in as a cabinet minister on Sunday. His appointment comes at a time the sector is going through a turbulent phase.

According to ministry officials, Singh wants to quickly implement the turnaround plan of the national carrier, which is reeling under a debt of Rs 40,000 crore.

“The minister is trying to understand all the problems that plague the airline. He is concerned about Air India’s human resource issues as well and wants to make sure that salaries are disbursed on time,” a senior ministry official said.

While taking charge of the ministry today, Singh said, “This is a very sensitive sector and I am taking my time to understand it.” He also met the top officials of the ministry.

The turnaround plan aims to make Air India operationally profitable in four years. Nearly 20 of its lenders (banks) have expressed their willingness to recast its entire Rs 40,000-crore debt.

As part of the turnaround plan, the cash-strapped airline has set a target of increasing revenues by Rs 5,000 crore and slash costs by Rs 4,000 crore per annum, making it profitable by 2015.

Of the Rs 40,000-crore debt that Air India is saddled with, Rs 18,000 crore is working capital loans taken from a consortium of banks and the remaining Rs 22,000 crore is loans to pay for new aircraft. Many aspects of the plan, including route rationalisation and the hiving off of the MRO (maintenance, repair and operation) unit, will be worked on.

Pilots who have been facing human resource and salary issues are also planning to meet the minister. “Since morning we have received requests from almost all Air India unions, including the ones representing the pilots who are demanding a formal meeting with the minister. The meeting might happen soon,” the official said.

Ajit Singh, 72, the son of former Prime Minister Choudhary Charan Singh has been a minister in both Congress and BJP governments. In 2001-03, he was in charge of the agriculture ministry.

The civil aviation portfolio was held as an additional charge by overseas Indian affairs minister Vayalar Ravi.