Govt committed to Air India divestment: Aviation Minister

Tribune News Service

New Delhi, July 3

Noting that the government is committed to disinvestment of Air India, Minister for Civil Aviation Hardeep Singh Puri today said keeping this in view a detailed plan has been worked out to revive the national carrier to make it operationally viable.

Replying to a supplementary question in the Rajya Sabha, the Minister said Air India is set to make profit during the current financial year, as there has been a steady improvement in finances of the airline. He asserted that the national carrier is currently generating daily revenue of Rs 15 crore.

He said, “Our plan is to revive Air India, make it more operationally viable and then to disinvest it. So far, as Air India is concerned, the government is committed to the privatisation of Air India. Let there be no ambiguity on that.”

Noting that the costing and overall calculations of an airline depends on a large number of factors, including external factors such as closure of Pakistan air space, the minister said, by the end of this year Air India should make profit and then it will be disinvested.

“There has been a steady improvement in Air India’s finances. We hope to make profit in the current financial year. But in the year that has concluded, the figure shall show a loss,” the Minister said.

Puri also rejected as “motivated” certain news reports that the airline did not have enough finances and was unable to pay up salaries up to this October. He said there is an overall debt of Rs 59,000 crore and there was a proposal to retire Rs 29,000 crore into a Special Purpose Vehicle (SPV) when an attempt would be made to privatise Air India.

“After all, Air India is a viable airline and it has some prized assets and when we go for disinvestment, we will also take care of this. But, the press report was motivated in order to put pressure on the government not to disinvest Air India,” the minister asserted.

National carrier owes Rs 59,000 crore 

• Replying to a supplementary question in the Rajya Sabha, the minister said Air India is set to make profit during the current financial year, as there has been a steady improvement in finances of the airline
• He asserted that the national carrier is currently generating daily revenue of Rs 15 crore
• There is an overall debt of Rs 59,000 crore and there is a proposal to retire Rs 29,000 crore into a Special Purpose Vehicle when an attempt would be made to privatise the airline