16.1 C
New Delhi
Wednesday 11 December 2019
Economy Business Puri: Air India will be difficult to run if...

Puri: Air India will be difficult to run if not privatised

Union Civil Aviation Minister Hardeep S Puri also answered a question on the fate of reservation in Air India once the airline is privatised

Union Civil Aviation Minister Hardeep Singh Puri has made it clear that if Air India is not privatised, it will be difficult to run it. He said there was no money to run it.

Talking to news agency ANI in the Parliament complex, Puri said, “If we do not privatise Air India, where will we get the money to run it? Air India is a first-class asset and, if sold, we will get bidders. Honestly, it is really difficult to run it.”

The Disinvestment Committee had decided that the government should exit the business of Air India completely. The government also is considering loosening the eligibility criterion for potential bidders so that new companies and high net worth individuals (HNIs) are able to participate in the sales process.

Earlier in the Rajya Sabha, the Union civil aviation minister had said that Air India pilots were being taken care of and not a single pilot had resigned. Puri said the Air India pilots’ salaries were more than commensurate with the industry rates. He said that only 25% of the salary of some employees had been withheld. “This part will be given to all employees before disinvestment,” the minister assured.

For a long time, the Narendra Modi government has not been able to finalise whether it should go for strategic sales of Air India’s stakes or sell it fully.

The government once said it could allow up to 49% FDI in Air India, but it is infamous for bowing down to the demands of Sangh Parivar elements like the Swadeshi Jagaran Manch that just wouldn’t allow foreign investment anywhere.

Kind of debt Puri is staring at

Air India incurred a huge loss of Rs 8,400 crore in the financial year 2018-19. The state-run airline is already struggling with a shortage of funds and is burdened with debt.

The company has incurred huge losses due to higher operating costs and foreign exchange losses. A new airline can be started with the amount of loss Air India incurs in a year.

Air India currently is burdened by a debt of around Rs 60,000 crore, including long-term loans for the purchase of aircraft and working capital.

A huge equity infusion of Rs 27,195 crore did not help revive the fortunes of Air India. Repeated attempts to sell the airline has failed even after the eligibility rules for buyers were relaxed.

What happens to caste quota after privatisation?

What will be the rule of reservation for Air India employees after privatisation? To this question, Puri said that it often so happened that most of the old employees remained post-privatisation.

Thereafter, Puri added, the government wouldn’t interfere in new recruitments. In 2018, the first Modi government had said it could absorb the existing employees in other PSUs.

This is not the first time Puri has spoken of the government’s “commitment” to disinvest Air India.

Subscribe to our newsletter

You will get all our latest news and articles via email when you subscribe

The email despatches will be non-commercial in nature
Disputes, if any, subject to jurisdiction in New Delhi

Leave a Reply

Opinion

Justice That Is Instant Is Travesty

But neither the state nor society can wash their hands off this social craving for settling scores in the name of doing justice to the victim

Karnataka Voters Punished INC, JDS Leaders

Even the BJP was not confident of the result even as their leaders kept saying for public consumption they were winning all the 15 seats

The United States Of The World

The United States, stereotyped as the land of plenty and plentiful guns, is still a destination of choice for people from across the world

प्याज़ के आँसू न रोएँ — महंगाई से किसान, उपभोक्ता दोनों को फ़ायदा

जिस अल्प मुद्रास्फीति की वजह से वे सरकार से बहुत खुश थे, उसी 1.38 प्रतिशत की खाद्यान्न मुद्रास्फीति के कारण किसानों को अपने पैदावार के लिए समुचित मूल्य नहीं मिल रहे थे

CAB Can Correct Wrongs Of NRC

… if the government can fix the inept bureaucracy and explain what happens to those marked as aliens, as the neighbours are not taking them back
- Advertisement -

Elsewhere

Pakistan says CAB akin to interfering in its matters

'We condemn the legislation as regressive and discriminatory, which is in violation of all relevant international conventions and norms...'

Shiv Sena’s volte-face on CAB: Will not support bill in RS

Earlier, Shiv Sena leader Arvind Sawant had said that in the Rajya Sabha, as in the Lok Sabha, the party would support the citizenship bill

Justice That Is Instant Is Travesty

But neither the state nor society can wash their hands off this social craving for settling scores in the name of doing justice to the victim

Karnataka Voters Punished INC, JDS Leaders

Even the BJP was not confident of the result even as their leaders kept saying for public consumption they were winning all the 15 seats

Nirbhaya to get justice the day she was tormented?

Sources say the Tihar authority has sent its officers to different jails in the country to look for an executioner even as they await the president's response to a second convict's mercy plea

You might also likeRELATED
Recommended to you

For fearless journalism

%d bloggers like this: