The Centre injected Rs. 3,975 crore into Air India in the fiscal year that ended March 31. (File)

Continued support from the government has resulted in an improvement of the financial and operational performances of Air India and the Centre has decided to go ahead with the process of its disinvestment, the Ministry of Civil Aviation said today.

"In an AISAM (Air India Specific Alternative Mechanism) meeting held on 28th March 2018, it was decided that due to issues like volatile crude oil prices and adverse fluctuations in exchange rates, the atmosphere was not conducive for the disinvestment. But this was last year," the ministry said in a statement.

The AISAM, which is basically a Group of Ministers (GoM), has to be reconstituted as Arun Jaitley and Suresh Prabhu are no longer ministers in the second innings of the Narendra Modi government.

They will be replaced by Finance Minister Nirmala Sitharaman and Civil Aviation Minister Hardeep Singh Puri. Transport Minister Nitin Gadkari is likely to continue in the panel.

"Continued support from the government has resulted in improvement of financial and operational performances of Air India. As per the recommendations of the AISAM, the government will now go ahead with the process of disinvestment of the company," the ministry said.

At a meeting on June 28, 2017, the Cabinet Committee on Economic Affairs (CCEA) had in-principle approved the consideration for strategic disinvestment of Air India and its five subsidiaries. The AISAM was constituted by the CCEA for this purpose.