Air India will be either privatize or it will be closed

 

If you don’t know Air India has a huge debt of ₹60,000 crores on them and government will not be able to pay this debt so, therefore, the government wants to privatize Air India or it will be closed.

Air India privatization

On Tuesday Hardeep Singh Puri Civil Aviation Minister said “The Indian government has the choice of either privatizing national carrier Air India Limited or close it down, due to its huge debt”.

Speaking at the Rajya Sabha before the passage of Aircraft Amendment Bill 2020, Hardeep Singh Puri said that regarding the privatization of the national carrier, if the government could help it, it would keep operating the airline. And he also said that the county’s busiest airports at Delhi and Mumbai account for 33% of traffic, while six airports awarded to the Adani Group account for just 9% of total traffic.

However, with ₹60,000 crore debt, the choice is between privatization and closing down the airline. “We are confident that Air India will be given to a new owner to keep the flag flying high,” he added.

Report of Bloomberg:

Bloomberg on Monday reported that the Indian government is proposing to drop a condition that the winning bidder for Air India Ltd. will have to take on $3.3 billion of aircraft debt according to quoting sources.

According to the report, a group of bureaucrats has vetted the plan, and under the new proposition, potential buyers will be allowed to bid on the enterprise value and not on the entity value.

Puri said that no competitive open bidding took place for airports during the last 15 years due to the prior experience clause. Under this clause airport operators needed to have prior experience of operating an airport to bid.

What was happened with international airport of Kerala?

Hardeep Singh Puri stated that the Union government’s decision in August to hand over the international airport at Thiruvananthapuram to Adani Enterprises Ltd (AEL), which won operating rights in an auction, is generating a lot of controversies from the state government.

When the privatization process took place, the government of Kerala, Niti Ayog, and an empowered group of secretaries had a discussion, during which it was decided that if the Kerala government’s bid falls within the 10% range of the winning bid, it would be awarded the airport, Puri said adding that the eventual gap between Kerala government and winning bidder (Adani Group) was 19%.

The Kerala state assembly had last month unanimously passed a resolution against the 50-year contract to AEL, a move the Centre termed “regressive and far removed from public opinion”.

During 2014, the average scheduled aircraft accidents for billion flights figure for India stood at 2.8 while the global average was 3.06, Puri said adding that the same figure for India was 0.82 during 2019, while the global average stood at 3.02. The Rajya Sabha passed the Aircraft (Amendment) Bill 2020, which was held by civil aviation minister Hardeep Singh Puri, after a long hour of discussion.

If you like my work please support me by sharing this post to your friends, family and loved ones.

Leave a Comment

Your email address will not be published. Required fields are marked *