india

Updated: Jul 11, 2019 23:40 IST

The government is committed to national carrier Air India’s disinvestment due to its “unsustainable debt burden”, civil aviation minister Hardeep Singh Puri told Lok Sabha on Thursday. Puri added they are keen to see that the airline remains in Indian hands.

“It is not the government that failed to attract passengers. Air India is a first-class asset. It has 125 planes. Half of them are flying in 40 international directions and 80 in domestic destinations. The problem is that it has taken an unsustainable debt burden. It is servicing of that debt burden which is a problem,” Puri said.

He said as soon as the government has the provisional figures and alternate mechanism in substantive motion, the process of its strategic disinvestment will be started. “We believe the government’s scarce resources should be utilised in the other development scheme. And this is area privatisation and disinvestment will work,” Puri said.

He said the government was committed to the strategic disinvestment of Air India as NITI Aayog in its recommendations has given the rationale behind it and referred to fragile finances of the company. “Privatisation of Air India was for the benefit of people and the government will do its best to ensure that the company is purchased by an Indian entity,” added Puri.