Thursday, August 09, 2018

NITI Aayog suggests Air India be made profitable before it’s privatised

Air India should be made profitable before it is privatised so that the government can fetch a better value for the national carrier, according to NITI Aayog vice-chairman, Rajiv Kumar.

The suggestion comes after the government's first attempt to privatise the airline gathered little response from investors owing to their discomfort with the sale conditions and their aversion to buying a loss-making company at a time of high jet fuel prices.

Air India had accumulated a debt of Rs 48,781 crore at the end of FY17. The company documents, however, show that its net losses before exceptional and extraordinary items had been steadily narrowing in the four years until FY17.