'Choice Between Disinvestment or Closing Down': Hardeep Puri Decides to Privatize Air India

• Union Minister Hardeep Singh Puri has announced that in the coming days AirIndia will be fully disinvested.
• According to the Aviation Ministry, AirIndia is a first-class asset for a private player with a healthy market share, It has the potential to become a profitable company after clearing debt of Rs 60,000 Crore.
• This time govt has a mindset regarding AirIndia disinvestment last time privatization was not successful because those attempts were half-hearted.

Union Minister Hardeep Singh Puri announced on Saturday that To save the employment of people working in AirIndia which is a loss-making company owned by the Indian government, the company needs to be completely disinvested. We tried to find another way of taking the company out of the loss but eventually, we are left with only two options i.e either closing down the company or disinvestment”.

“We’ve decided that Air India will be 100% disinvested. The choice isn’t between disinvestment and non-disinvestment, it’s between disinvestment and closing down. Air India is a first-rate asset but has an accumulated debt of Rs 60,000 Crore. We need to draw the slate clean” Hardeep Singh Puri said.

The Union Minister on Friday said the potential buyers will be invited in the coming days for bidding and the one who will emerge as the highest bidder will own the company.

The government has already finalized the list of bidders (for Air India disinvestment in the last meeting which was held on Friday and will be informed bids have to be submitted to the concerned department within 64 days. This time government has a clear mindset regarding AirIndia and there is no hesitation,” he said. According to his speculation disinvestment process is expected to be over by May or June.

The government has started the process to sell its entire 100 percent stake in Air India that has been in losses since it merged with Indian Airlines in 2007. “…There is no choice, we either privatize or close the airline. We run a loss of Rs 20 crore every day despite Air India making money now. Because the mismanagement has resulted in a cumulative debt of Rs 60,000 crore,” Puri had said on Friday.

“ I can’t go to Nirmala Ji and request for the fund to run loss-making unit,” He also noted that earlier attempts at Air India privatization were not successful because those attempts were half-hearted.

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