Tale after tale are adding in the Air India privatization. After reportedly finding Tata Group to buy stake in Air India, Indigo now shows interest in the airlines. According to recently released data, Indigo stands on the top of the table in terms of market share.
The Cabinet yesterday approved divestment of Air India.
Air India has a fleet of 118 aircraft and flies the highest number of passengers to and from India according to Directorate General of Civil Aviation data. It also has coveted parking slots in airports round the world such as New York, Chicago and London besides 18 morning departure slots in Mumbai alone.
Air India is selling its stake only due to its mounting debts. The Modi government has infused nearly ₹16,000 crores since 2014 and the central exchequer is no longer keen on keeping the airline afloat with little sign of a revival.
NITI Aayog has suggested divestment of up to 100%. While the proposal entails the government taking a hit by waiving ₹22,000 crores in debt.