Indian government mulling Air India stake sale
India’s finance minister Arun Jaitley says the government is seriously considering all options for loss-making Air India, including allowing a strategic stake in the airline.
The national flag carrier now has just a 14% share of the domestic air travel market, behind market leader IndiGo and Jet Airways.
"When 84 per cent of the aviation market can be run by private airlines there is no reason why it cannot go to 100 per cent", the minister told reporters.
"When I briefly worked as the minister for civil aviation in the Atal Bihari Vajpayee government, I had signed on Air India’s file asking for its total disinvestment", he added.
He said however that the civil aviation ministry will ultimately decide whether to offer a stake or totally divest the airline.
It is the first official indication the government is looking at bringing in a strategic investor.
The minister said Air India’s debt has widened to about Rs 50,000 crore, half of which is tied to the value of its aircraft purchases.
Despite posting a profit in 2015-16 on lower fuel costs, civil aviation minister Ashok Gajapathi Raju last week said the airline’s current financial performance is looking ‘bad’ and ‘business as usual’ will not save it alone.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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