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Air India sale will hinge on fate of its Rs 52,000 cr debt: Arvind Panagariya

  •   Fri, Jun 02 2017 01:52:46 PM

New Delhi, Jun 2 (IANS): A crucial issue in disinvestment of Air India is whether the government is willing to write off at least a part of the national carrier's massive accumulated debt, the Niti Aayog said on Friday.

"Air India has a debt of Rs 52,000 crore, settling which will be a very difficult affair," Niti Aayog Vice Chairman Arvind Panagariya told reporters here, while briefing about the work of the government think-tank since it was set up in 2014.

"Something has to be done on the debt issue...Whether the government writes off part of the debt, or not," Panagariya said, elaborating on the crucial issues involved in the divestment.

"The government needs to resolve four big issues in Air India's strategic disinvestment...Whether or not to privatise, and if yes, then what is the universe of potential buyers... Whether even foreign buyers can bid," he said.

Besides the huge debt, Panagariya said the government also would need to consider whether to retain some stake in Air India since it is the national carrier.

In a recent report to the Civil Aviation Ministry, the NITI Aayog has recommended strategic disinvestment from the loss-making Air India, by which government control would be transferred to a private owner.
  

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Comment on this article

  • Max and Jessie Rasquinha, Mangalore, Houston/Dallas, texas

    Sat, Jun 03 2017

    The National Carrier of each and every Nation is part of the National commitment and obligation towards the Aviation Industry as well as the Tourism Industry. In these difficult times, although each and every incoming and outgoing flights are overfilled with paying passengers as well as rebated passengers, the airline industry is a burdensome industry because of the growing maintenance costs plus refurbishing costs including amortization and security surveillance.

    Majority of the airlines, all over the world, are running their National carrier with a red-colored bottom line. Cost of fuel is although well under control over the past one year, the present price level is still high for each and every carrier, with the exception of certain Middle Eastern Airlines that are highly subsidized by the Government with high reduction in fuel costs.

    The Security costs all over the world have sky-rocketed and each and every airline has to shoulder the financial burdens with a distinct view of maintaining a National carrier for the name and fame of Tourism. Each and every National Carrier is fully conscious of the facts beneath the airline industry, but in the overall context of tourism various other added benefits of Tourism and Travel should be taken into consideration.

    Creation of new and modern airports, upgradation of all the existing airports and all the increased overheads are all part of the Airline industry that we have to accept with a smile. That is our simple and humble opinion.

    DisAgree Agree [1] Reply Report Abuse


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Title: Air India sale will hinge on fate of its Rs 52,000 cr debt: Arvind Panagariya



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