AI cancels costly deal for image makeover

Sources said the agreement was cancelled last evening after a controversy broke out following a question asked in Rajya Sabha whether the ailing national carrier had entered into such an agreement.

In reply,Civil Aviation Minister Praful Patel had said 8220;Cato Purnell Partners have been appointed by the National Aviation Company of India Ltd NACIL to revitalise its brand identity,and the fees payable to them would be around USD 1,612,750 plus taxes8221;.

The Minister had said that the tie-up would help develop an identity and broader visual language that would allow NACIL to be seen as a meaningful partner to the Games.

The consultant,he said,would also help the national carrier develop a migration strategy and design,and revitalise the Air India brand.

In reply to another question,Patel had said Air India has suffered losses of Rs 13,430 crore in the last three years.

The national carrier,which incurred losses of Rs 2,226.16 crore and Rs 5,548.26 crore during financial years 2007-08 and 2008-09,is expected to incur a loss of Rs 5,656.52 crore during 2009-10.