New Delhi: The government will look at completely exiting Air India (AI) when the divestment process of the debt-ridden carrier kicks off shortly. Aviation minister Hardeep Singh Puri said on Thursday that the aim is to have total privatisation, “best possible deal in shortest (possible) time.” He added that there are many who are very interested in the airline and the one one “who gets it is very fortunate”.
“AI is a first class airline. The Maharaja has over the years come to represent India’s soft power. You may then ask why then sell off the airline? I believe the government should not be in the business of running airlines and that AI must be run in the private sector,” Puri said.
AI has a debt burden of about Rs 60,000 crore. The attempt last year to sell off the Maharaja had come a cropper and privately-run Jet Airways, which shut down this April, has also so far failed to find a buyer. Asked in this backdrop does the government have a Plan B if the second attempt to privatise AI is also unsuccessful, Puri said: “Once you go down a route and encounter obstacles, there are lessons to be learnt. We will analyse (the experience of last time). This time we will succeed. There is interest among buyers.”
Among the factors that kept bidders away from AI last time round were the partial (74%) divestment the government had opted for and the debt burden the potential buyers were expected to keep. So this time the government may go in for complete sell off, barring 1-2% for being offered to employees. While no decision on debt has been taken yet, that could be significantly reduced too.
“This government is not even 100 days old. Our determination to privatise AI is a given. The alternate mechanism (or group of ministers) for AI divestment has been formed under home minister Amit Shah. Before the issue is taken up that that level, a meeting at cabinet secretary level has taken place. We will get the best possible deal in shortest time available,” the minister said.
29/08/19 Saurabh Sinha/Times of India
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“AI is a first class airline. The Maharaja has over the years come to represent India’s soft power. You may then ask why then sell off the airline? I believe the government should not be in the business of running airlines and that AI must be run in the private sector,” Puri said.
AI has a debt burden of about Rs 60,000 crore. The attempt last year to sell off the Maharaja had come a cropper and privately-run Jet Airways, which shut down this April, has also so far failed to find a buyer. Asked in this backdrop does the government have a Plan B if the second attempt to privatise AI is also unsuccessful, Puri said: “Once you go down a route and encounter obstacles, there are lessons to be learnt. We will analyse (the experience of last time). This time we will succeed. There is interest among buyers.”
Among the factors that kept bidders away from AI last time round were the partial (74%) divestment the government had opted for and the debt burden the potential buyers were expected to keep. So this time the government may go in for complete sell off, barring 1-2% for being offered to employees. While no decision on debt has been taken yet, that could be significantly reduced too.
“This government is not even 100 days old. Our determination to privatise AI is a given. The alternate mechanism (or group of ministers) for AI divestment has been formed under home minister Amit Shah. Before the issue is taken up that that level, a meeting at cabinet secretary level has taken place. We will get the best possible deal in shortest time available,” the minister said.
29/08/19 Saurabh Sinha/Times of India
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