Civil Aviation Minister Hardeep Singh Puri said on Thursday that the government has sold its 100 percent stake in the state-owned airline Air India as part of the proposed disinvestment process. Air India has a debt of over Rs 50,000 crore. It has been at a disadvantage for a long time and as part of its revival efforts; the government has decided to disinvest.
In a written reply to a question in the Lok Sabha, Civil Aviation Minister Hardeep Singh Puri said, ‘After the formation of the new government, the Air India Specific Alternative System (AISAM) was restructured and approval to resume the strategic disinvestment of Air India given.’
He said that AISAM has approved the sale of a 100 percent stake of the Government of India in the public sector airline for the resumed strategic disinvestment of Air India.
They have estimated air India to incur a total loss of Rs 8556.35 crore in the financial year 2018-19. The minister said they have taken several steps n to improve the aviation sector, including the transfer of aircraft of Jet Airways to other companies.
Significantly, Air India Company has a total debt burden of Rs 58,000 crore. Air India reported an operating loss of about Rs 4600 crore in the last financial year. Last year also the government wanted to sell Air India, but the government due to volatility in crude oil prices stopped it. Now the government is active once again to sell it. They proposed the NITI Aayog to sell the entire stake of the company. Jet Airways completely shut down the operation because of the cash crisis in April.
On 27 November, Union Civil Aviation Minister Hardeep Singh Puri said in the Rajya Sabha that under the debt burden of thousands of crores of rupees. So the government will shut it down completely. The Union Minister said that the government will take care of the interests of all the employees of Air India. He had said that the privatization or closure of Air India would hurt no employee.