Air India privatisation 'unpatriotic', 'illogical', says retired employees' union in letter to minister

The retired employees' union also proposed that the government could waive Air India's Rs 52,000 crore debt

PTI July 20, 2017 10:11:03 IST
Air India privatisation 'unpatriotic', 'illogical', says retired employees' union in letter to minister

New Delhi: The employees union of Air India representing retired personnel on Wednesday termed the government's move to privatise the airline "unpatriotic" and "illogical" in a letter to Civil Aviation Minister Ashok Gajapathi Raju.

The letter also says that the the government's priority should be to restructure the airlines huge debt.

The All India Airlines Retired Personnel Association (AIARPA), which has written the letter, represents nearly 11,000 former employees of Air India.

Air India privatisation unpatriotic illogical says retired employees union in letter to minister

Representational image. PTI

"Why has the government announced the decision to privatise AI -- a decision taken in great haste -- just at a time when the airline is on the verge of becoming profitable.

"The move is unpatriotic as well as not logical at this point of time," the union said in the letter.

For the first time in a decade, the airline posted an operational profit of Rs 105 crore in 2015-2016. It rose to Rs 300 crore in 2016-2017.

"For now the restructuring of debt be carried out," said the letter.

The union also proposed that the government could waive Air India's Rs 52,000 crore debt so that it can "forge ahead" like it plans to do to make the national carrier attractive for a private player.

It also claims that private investors are "interested" in AI because it is operationally profitable, has a large fleet of aircraft, a profitable low-cost international carrier like Air India Express, profitable ground handling services, and prime slots at airports around the country and the world, among other factors.

"The real reform needed is for compensating for costs incurred in implementing specific government policies not in line with their commercial objectives," adds the letter.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

DGCA says suspension of international passenger flights extended till 15 July, may allow operation on case-by-case basis
India

DGCA says suspension of international passenger flights extended till 15 July, may allow operation on case-by-case basis

Scheduled international passenger flights were suspended in India on 23 March due to the coronavirus pandemic.

India mulling 'bilateral bubbles' with US, UK, Germany and France for air travel, says aviation ministry
India

India mulling 'bilateral bubbles' with US, UK, Germany and France for air travel, says aviation ministry

Scheduled international passenger flights have been suspended in India since 25 March due to the coronavirus pandemic.

India to operate nine flights to evacuate nationals stranded in UAE under Vande Bharat Mission
India

India to operate nine flights to evacuate nationals stranded in UAE under Vande Bharat Mission

According to the Indian Consulate in Dubai, Air India Express will operate these flights from Sharjah to various cities in south India