Friday, October 11, 2019

Sale-bound Air India subsidiary gets nod for foreign flights

New Delhi: The Civil Aviation Ministry has approved Alliance Air plan to launch foreign operations by starting flights to Sri Lanka even as the airline's parent Air India remains on top of the government's disinvestment agenda.
The move has triggered speculation among Air India employees that government may continue in airline business by not selling Alliance Air. This runs counter to the government's often repeated argument that "government has no business to be in airline business."
 "The move suggests government would not sell Alliance Air and continue in airline business. Alliance Air could be an "Indian Airlines" in the making. We are unable to understand then why Air India is being sold," said an executive.
 "Perhaps, it wants to keep an airline to serve political interests. Anyways, so many flights have been started after General Elections on recommendations of legislators," he added. The permission for inaugural overseas flight has come even as Alliance Air's financial health remains precarious.
The carrier reported a net loss of Rs 263.76 crore in 2017-18 as against the net loss of Rs 286.70 crore in the previous financial year.
 11/10/19 Nirbhay Kumar/IANS/Economic Times
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