Step-by-step privatisation of Air India likely

New Delhi: Faced with accumulated losses of Rs 7,200 crore, national carrier Air India’s deteriorating condition has forced the government to push for privatisation of the carrier. While the UPA government does not favour strategic sale, the civil aviation ministry and the Air India management are likely to consider a piecemeal approach to privatisation.

Officials in the civil aviation ministry told The Indian Express that a background note on the company’s financials was being prepared for the Union Cabinet. “The options before the Cabinet will be limited. And privatisation will definitely be one of the logical options,” an official said. Just a fortnight ago, the airline was faced with the prospect of a shutdown with state-owned oil marketing companies (OMCs) refusing to extend credit, the officials said. The OMCs bills had piled up to Rs 2,000 crore and they threatened to put an almost bankrupt Air India on a cash and carry basis.
08/03/10 Smita Aggarwal/Indian Express

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Categories: NACIL Mar 2010