Civil Aviation Minister Suresh Prabhu said on Wednesday that the government is committed for the disinvestment of its stake in national air carrier Air India and will soon review a plan on it.
The government is committed that Air India remains an independent, globally-competitive and a highly-successful airline, junior civil aviation minister Jayant Sinha told a news conference on Wednesday.
While addressing a press conference on the Initiatives and Achievements of the Civil Aviation Ministry and releasing a booklet on the achievements of the last 4 years, Mr Prabhu said that the government is concerned about Air India and the Group of Ministers’s headed by Union Minister Arun Jaitley will soon take a decision.
Minister of State for Civil Aviation Jayant Sinha on the occasion added that as on date the first round of disinvestment effort for Air India is over, but the government is looking for alternatives and options for Air India.
He said that Air India related issues are legacy problem due to heavy debt and huge interest burden.
The government had announced a plan in March to divest a 76 per cent stake in Air India and offload about 5.1 billion dollar of its debt, but prospective buyers stayed away, with some citing onerous terms as a reason for their lack of interest.