Govt does not want Air India to go defunct like Kingfisher Airlines, says Ashok Gajapathi Raju

Air India has a debt of more than Rs 52,000 crore and is surviving on a Rs 30,000 crore bailout package extended by UPA govt in 2012

PTI December 28, 2017 15:20:34 IST
Govt does not want Air India to go defunct like Kingfisher Airlines, says Ashok Gajapathi Raju

New Delhi: The government does not want Air India to become defunct like the Kingfisher Airlines, promoted by embattled liquor baron Vijay Mallya, and wants it to serve the nation, Civil Aviation Minister Ashok Gajapathi Raju said on Wednesday.

The government does not want anyone working in Air India to lose job, Raju said in the Lok Sabha, adding that the disinvestment process of the national carrier has been initiated.

"Nobody wants anyone to become unemployed. We don't want Air India to go the Kingfisher (Airlines) way. We want the Air India to serve the nation, to serve the people and fly high," he said during the Question Hour.

Govt does not want Air India to go defunct like Kingfisher Airlines says Ashok Gajapathi Raju

The minister said a ministerial committee headed by Finance Minister Arun Jaitley is looking into the matter of disinvestment of Air India and anyone, including MPs, are welcome to give their suggestions to this panel.

On June 28, the Union Cabinet had cleared disinvestment of debt-laden Air India but the final modalities, including the quantum of stake sale, would be decided by a group of ministers headed by the finance minister.

Surviving on taxpayers' money, Air India has been in the red for long and various proposals, including government think-tank Niti Aayog's recommendation for complete privatisation, have been made.

The airline has a debt of more than Rs 52,000 crore and is surviving on a Rs 30,000 crore bailout package extended by the erstwhile UPA government in 2012.

The Kingfisher Airlines was established in 2003 by Mallya. The air carrier was suspended by the Directorate General of Civil Aviation after it failed to address the regulator's concerns about its operations.

Kingfisher Airlines also defaulted on loans from various Indian banks amounting to Rs 9,000 crore. Mallya left the country for the UK after failing to repay the debt.

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

Air India stake sale will be 'very, very difficult' says Arvind Panagariya
Business

Air India stake sale will be 'very, very difficult' says Arvind Panagariya

Loss-making Air India, surviving on taxpayers' money, is facing tough business conditions amid stiff competition.

Air India privatisation: Government plans to sell 76% stake in ailing national carrier
Business

Air India privatisation: Government plans to sell 76% stake in ailing national carrier

The Civil Aviation Ministry has sought Expression of Interest (EoI) for the stake sale in the loss-making Air India and two of its subsidiaries

Air India flop show: Govt puts off sale plan, will pump money instead; national carrier might target IPO
Business

Air India flop show: Govt puts off sale plan, will pump money instead; national carrier might target IPO

Air India will very soon get funds from the government for its day to day operations and will even place orders for a couple of aircraft, a govt official said