Air India to be privatized

August 30, 2019 Hot from the Oven Valli Sarvani No comments

Indian government wants to privatize Air India. The Union Civil Aviation Minister Hardeep Puri confirmed that the government is committed to privatizing Air India and is looking for people who are interested to acquire the national airlines.

He said that people who acquire Air India would be very lucky and they would easily operate it due to strong private sector principles.

The Chairman and Managing Director of Air India Ashwani Lohani announced that the use of plastic would be completely banned in both Alliance Air and Air India Express from October 2.

He also assured to sort out the fuel supply problems soon. As Air India has dues to State-owned oil marketing firms, the fuel supply had been stopped for Air India flights at six airports.

These airports include Ranchi, Mohali, Vizag, Pune, Patna, and Cochin.

An official from Air India revealed that a discussion is ongoing with the OMCs to resolve the oil supply issue.

They paid ₹60 crore as past dues and made yesterday’s payments as well.

Air India has a debt burden of over ₹50,000 crore and the government is expected to start the disinvestment process for the airlines.

Currently, the government is aiming to get the best possible deal for it in the shortest duration. The stake sale process is expected to be finished in the next five months.

Air India that has around 10,000 permanent employees, stopped giving promotions to them and recruiting new personnel.

It is generating a revenue of ₹15 crore each day.

The government had sought bids and came out into public view with a preliminary document on March 28. It received more than 160 queries from different parties in the next 19 days.

Yet, no bids had been received from any entity to acquire 76 per cent stake in the airlines after the announcement of government on May 31 for the submission of Expression of Interest.

Image Credit: Image by Bishnu Sarangi from Pixabay (Free for commercial use)