Once again reiterating that Air India will be privatised, Union Civil Aviation Minister Hardeep Singh Puri on Tuesday said that they are trying to do it as quickly as possible adding that over a period of time it has gathered debt which could be described as unsustainable.
Speaking on Air India privatisation, Hardeep Singh Puri said, "We do not become a slave to or victim of certain deadlines, we are doing it seriously. We are trying to do it (privatisation of Air India) as quickly as possible."
"I had said earlier also, for us it is not an option, Air India has to be privatised," Puri added. The Union Minister also added on air fares saying they will always be market-driven, saying that there are no plans to regulate them.
Air India may be forced to shut down if it fails to find a buyer, says a senior official
On December 30, a senior official had said that struggling Air India might be forced to shut down by June next year unless it finds a buyer as "piecemeal" arrangements cannot be sustained for long, according to a senior airline official.
Amid continuing uncertainty over the fate of the national carrier, the official said there is also need for funds to restart operations of 12 grounded narrow-body planes.
The airline has a debt burden of around Rs 60,000 crore and the government is still working on the modalities for the disinvestment. Sounding alarm bells, the official said Air India might well go Jet Airways way if a prospective buyer does not come on board by June next year.
With the government leaving the debt-ridden airline to fend for itself by refusing to inject funds any more amid its privatisation plans, the airline is "some how" keeping it afloat with peace meal arrangements, which are unlikely to sustain for long, the official said.
As per the government, it has infused funds to the tune of Rs 30,520.21 crore in the flag carrier from financial year 2011-12 till December this year.
Under the turnaround plan approved by the UPA regime in 2012, the airline was to get financial assistance of Rs 30,000 crore over a 10-year period.
"We had sought Rs 2,400 crore sovereign guarantee to mop up funds for meeting operational requirement. But the government has provided guarantee only for Rs 500 crore.
"We are some how managing the operations at present and at best we can sustain this situation till June. If a buyer does not come by that time, we will have to shut shop," said the official on condition of anonymity.
After more than 25 years of flying, full service carrier Jet Airways shuttered operations in April due to cash crunch.
In 2018-19, Air India's net loss is provisionally estimated to be Rs 8,556.35 crore.
Besides, it has a total debt of Rs 60,000 crore, half of which has already taken out of the books and parked in the special purpose vehicle, Air India Asset Holding Ltd.
Air India spokesperson was not available for comments.
(With inputs from PTI)
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