Aviation Minister Announces 100% Privatization of Air India
Posted on Mar 31st, 2021 by Heena Ganotra, Last updated on May 26th, 2022
The much-delayed privatization of India’s National Carrier, Air India, is likely to be complete by May-end, said Hardeep Singh Puri, the Civil Aviation Minister. Adding to this, he even mentioned that the choice that Air India has is only between disinvestment and closing down the company.
“We’ve decided that Air India will be 100% disinvested. The choice isn’t between disinvestment and non-disinvestment, it’s between disinvestment and closing down. Air India is a first-rate asset but has an accumulated debt of Rs 60,000 Crore. We need to draw the slate clean,” Civil Aviation Minister said.
“In the last meeting, on Monday, it was decided that the shortlisted bidders (for Air India disinvestment) be informed that the bids have to come in within 64 days. This time the Govt is determined and there is no hesitation,” he said. He added that the disinvestment process is likely to be completed by May-end or June beginning.
Why Is Air India Being Privatized?
The government is all set to sell its entire 100 per cent stake in Air India because there’s absolutely no other option. Air India can either be privatized or closed. Between the two gloomy options, the former sounds better and thus, the government is proceeding with the same.
Despite Air India making money, it bears a loss of Rs 20 crore every day. This mismanagement by the airline has cost the airline a total debt of Rs 60,000 crore.
Why Were The Previous Attempts At Privatizing The Airline Unsuccessful?
In the interview, Hardeep Singh Puri said that the previous attempts at privatizing the airline haven’t been successful because they were all half-hearted. But now, he added that he doesn’t have the energy to “keep going to Nirmala Ji and say please give me some money.”
How Will The Airfares Be Affected?
The airfares are likely to be increased. However, nothing can be said for sure. In any case, you can have the cheapest flights from Australia to India and back with MyTicketsToIndia. Being the quintessential flight-booking platform, we follow the lowest airfare policy and offer the industry’s best discounts.
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A writer by both passion and profession, Heena Ganotra is "half agony, half hope" but all heart. And oh, she has been a book lover from the start! Her love for books is what convinced her to make a career in the wonderful world of words. She loves what she does and is out-and-out a satisfied soul with a wish to spread happiness like herpes. Insight- Some say she is living the best life anyone could because she reads, writes, travels, and makes merry. They’re right because what else does one really need! 🙂