Tuesday, February 28, 2017

Govt to sell 51% stake in Air India? Aviation secy says not true

Union Civil Aviation Secretary RN Choubey on Tuesday denied that the government was looking to sell a majority stake in Air India. A  report had claimed that the government was looking to sell a 51 percent stake in the loss-making national carrier to a strategic partner.  People familiar with the matter were quoted as saying that the proposal had included reviving the airline within five years. They claimed that presentations had already been made to the Finance Ministry and the Prime Minister's Office.  While Air India spokesperson Dhananjay Kumar and Finance Ministry spokesperson DS Malik had declined to comment, Choubey cleared the air by saying that no such proposal was on the table. The national carrier, which has the largest fleet in the country with 140 planes, has 14.6 percent of market share in the domestic passenger market. Under a financial restructuring plan in 2012, Air India was slated to receive Rs 30,231 crore equity infusion, 75 percent of which it has received so far. The airline’s losses have reduced of late, with Air India reporting a loss of about Rs 3,587 crore in 2015-16, from a loss of Rs 5,859 crore in the previous year.
28/02/17 moneycontrol.com

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