AI cancels costly deal with Aussie firm for image makeover

New Delhi, Aug 4 (PTI) Loss-making Air India Wednesday
said it has cancelled its controversial USD 1.6 million deal
with an Australian firm to revitalise its brand identity for
the upcoming Commonwealth Games.
"Following a review of the brand and identity management
plans, the project with Cato Purnell Partners has been
annulled," an Air India spokesperson told PTI when asked
about the fate of the deal.
Sources said the agreement was cancelled Tuesday evening
after a controversy broke out following a question asked in
Rajya Sabha (Upper House of Indian Parliament) whether the
ailing national carrier had entered into such an agreement.
In reply, Civil Aviation Minister Praful Patel had said
"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 taxes".
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. PTI ARC
MRD