New Delhi: Privatization of Air India could be considered if there is political consensus, aviation minister Ajit Singh said on Saturday. He indicated that it may not be possible for any government to keep funding AI beyond the existing Rs 30,000 crore package spread over nine years.
"Once upon a time, the government used to run hotels. Slowly it got out of that business and even the public felt that it should not be doing that job. Maybe the public will start feeling the same way for AI and the political class may take decisions accordingly. AI has to be self-sufficient and employees must realize that they have to perform or the airline is at stake. State funding cannot be endless," Singh said.
According to the Centre for Asia Pacific Aviation (CAPA), AI has lost Rs 34,635 crore from 2007-13; has a total debt of Rs 46,500 crore and vendor dues of almost Rs 5,500 crore. The delay in deciding the fate of AI has brought the airline to the brink of a financial disaster.
06/10/13 Saurabh Sinha/Times of India
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"Once upon a time, the government used to run hotels. Slowly it got out of that business and even the public felt that it should not be doing that job. Maybe the public will start feeling the same way for AI and the political class may take decisions accordingly. AI has to be self-sufficient and employees must realize that they have to perform or the airline is at stake. State funding cannot be endless," Singh said.
According to the Centre for Asia Pacific Aviation (CAPA), AI has lost Rs 34,635 crore from 2007-13; has a total debt of Rs 46,500 crore and vendor dues of almost Rs 5,500 crore. The delay in deciding the fate of AI has brought the airline to the brink of a financial disaster.
06/10/13 Saurabh Sinha/Times of India
