Sunday, July 09, 2017

Air India: PM Narendra Modi pushes for quick sale of airline; break-up also an option

New Delhi: The state-owned Air India is expected to be sold out in parts by the government to make it attractive for potential buyers. According to reports, the decision to sell the airline was taken following huge losses.

Earlier, Cabinet of Prime Minister Narendra Modi in June gave a nod to sell the airline. In the past, several governments spent lots of money in order to keep it state-owned.

Founded in 1930s, Air India is under the debt of approximately Rs. 55,000 crore and its market’s share has slumped to 13 per cent. An employees’ union of the airline also protested against the idea of sale.

One can imagine the situation of Air India that on July 2, in a shocking and unusual incident, the national carrier's flight from Bagdogra to Delhi took off with a faulty air conditioning system, causing suffocation to passengers.

West Bengal Chief Minister Mamata Banerjee on June 29 also criticised the Modi government for trying to ‘privatise’ the national carrier.
09/07/17 News Nation