Government To Sell 100% Stake In Air India
Government To Sell 100% Stake In Air India, Civil Aviation Minister Hardeep Singh Puri said, it is under the proposed disinvestment process.
Airports Authority of India has embarked upon a capital investment of over Rs 25,000 crore in next five years for development/upgradation/modernisation of various airports and air navigation infrastructure," Puri said.
The national carrier, which has a debt burden of more than Rs. 50,000 crore, has been making loss since its merger with Indian Airlines in 2007-08. As part of revival efforts, the government has decided on disinvestment.
Air India's net loss in 2018-19 is provisionally estimated at Rs 8,556.35 crore and over Rs 4,230 crore loss in 2019-20, as per the aviation consultancy CAPA as it downgraded its full-year profitability projection made in June.
The minister said various measures, including handing over of Jet Airways (India) Ltd.’s aircraft to other airlines, have been taken to improve the aviation sector. Jet Airways was grounded in April 2019 for want of funds.
In June, it projected a consolidated net profit of $500-700 million in the optimistic case. There are, at present, four budget carriers and two full-service airlines—IndiGo, GoAir, SpiceJet, AirAsia India, Vistara and Air India.
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