Want to make Air India vibrant, says Civil Aviation Minister A Gajapati Raju

The national carrier Air India, entirely funded by government, was making losses and was now in a debt trap due to interest burden.

By: PTI | Kolkata | Published: December 5, 2017 3:51 pm
Ashok Gajapati Raju, Air India, Air India losses, Air India debt trap, aviation minister, business news, indian express Civil Aviation Minister Ashok Gajapathi Raju. (Source: Express)

Civil aviation minister Ashok Gajapati Raju today said the government wants to make Air India vibrant for which plans on an ‘alternative mechanism’ was being worked out. The national carrier, entirely funded by government, was making losses and was now in a debt trap due to interest burden.

“We want to make Air India a vibrant entity and not to go the Kingfisher way”, Raju told reporters here. He said the government was working on an ‘alternative mechanism’ and all options were being explored.

Raju said “Air India’s financials are bad. But we want it to continue to be in the skies”. The minister said private carrier Indigo had given expression of interest in Air India’s overseas operations, while the Tatas were making only verbal enquiries. “There is nothing in writing from the Tatas, it is only verbal”, he said.

Meanwhile, the department of investment and public asset management (DIPAM) of the finance ministry had decided to go for a strategic divestment route in Air India. Transaction advisors had also been appointed, Raju said.

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  1. Ajit Singh Sikand
    Dec 5, 2017 at 4:59 pm
    It is surprising, nobody knows, what to do with Air India. The recent initiative sparked by Amitabh Kant and Ashwini Lohani resulted in later leaving the Air India. Ministers come and go, Air India will remain. The question is how to privitize Air India. There are enough examples existing in the Aviation Industry. The most unfortunate part in the management of Air India ist that the company is run and managed by Non-Aviation professionals, Ashwini Lohani being the obly one in the recent years, whoc came from the Logistic Industry - Railways and he finally landed there where he came from. His managerial skills and strong will to manage Air India professionally hit on ignorants, deafs and dumbs. With due respect to IASs, they will never be able to manage this airline, they are beaurocrats and not managers. Some of them have proven capability, once they leave the services, the two are mentioned above.Another alternative is let elephant die Elephants death.