If the recommendations of Niti Aayog are implemented, Air India could soon become a private entity. In its recent report over the suggested steps to make Air India profitable, Niti Aayog has suggested the government to sell its entire stake to a private player. This report was submitted to Prime Ministers’ Office.
Aviation Ministry and the central government have been discussing ways to revive debt-ridden state owned airlines. In a recent statement, the aviation ministry had hinted that it could look at a possible privatisation of the airline, provided, that seems the best option.
In its report, Niti Aayog gave examples of the countries where the government sold their entire stake in the national airline to make them viable. These countries include Britain, Austria and Japan. Along with the privatisation, Aayog has also suggested to write off ₹32,000 of the debt.
Aviation Minister PA Ganapathi Raju stated that the government is discussing on the moves suggested by Niti Aayog and will reach to a conclusion soon. He was talking to reporters at a conference held to celebrate 3 years of the BJP government. He also added that Niti Aayog has suggested measures to make Air India independent and more viable.
Recently, Arun Jaitley had hinted in an interview that the government might consider disinvesting in the national airline. In 2012, Manmohan Singh government had approved a bailout program for Air India worth ₹30,231 crores. The airline is currently surviving on the same. Along with that, it has a cumulative loss of over ₹50,000 crores and is sitting with debt of over ₹55000 crores. Out of the ₹55,000 crores, ₹22,000 crores were taken for purchasing aircrafts whereas, the rest were taken for the working capital.