Press Esc to close
Wednesday 28 June 2017
News updated at 1:52 AM IST

Aviation minister rules out privatisation of Air India

New Delhi, Oct 6, 2013, DHNS 3:00 IST
Civil Aviation Minister Ajit Singh. File Photo
Civil Aviation Minister Ajit Singh on Sunday backtracked on his comments that the government was ready to privatise national carrier Air India, saying there is “no intention” to do so amidst an outrage from the opposition ranks.

However, he said the government will not give any more money to the airline after infusing Rs 32,000 crore as part of its turnaround plan.

“After this package, the government will not give any more money. Air India will have to fend for itself,” Singh told a news channel. His comments came a day after his assertion that the government was ready to privatise the carrier.

He said it was very difficult for the government to run a service industry and that employees and the management of Air India will have to understand that aviation is a very competitive market.

“The margins are thin and it’s a capital intensive industry,” he said.

The Air India was nationalised on August 25, 1953 after the government exercised its option to purchase a majority stake in the carrier then owned by Tata Sons. In 2001, there was a bid to disinvest stakes in Air India and Tata Sons along with Singapore Airlines planned to buy 40 per cent stakes.

However, the NDA government had to shelve the disinvestment plan due to political opposition.

Oppn attack

The opposition pounced on Singh for his comments with senior BJP leader Ravi Shankar Prasad warning him against making any “off-the-cuff remark. Underlining the need for a proper discussion first in the government and then with “the Opposition on the issue, he said it is a "serious and sensitive" issue.

CPI National Secretary D Raja described the remarks as “disastrous”. He said the privatisation of Air India would go against national interest.

“While equity was not being infused in AI in accordance with the turnaround plan, Airports Authority of India was also being systematically undermined. This is a conscious effort to dismantle both these public sector undertakings,” he alleged.

CPM MP Tapan Sen said the privatisation of the national carrier would amount to “anti-national” activity. “The UPA government is politically inclined to sell the country,” he said.
CPM-affiliated Centre of Indian Trade Union also opposed the minister reminding him that Air India belonged to the nation and was not the property of council of ministers.

Go to Top

Photo Gallery
An Iraqi special forces soldier walks by a damaged house during fighting...

An Iraqi special forces soldier walks by a damaged house during fighting...

Prime Minister Narendra Modi meeting the Prime Minister of Netherlands...

Prime Minister Narendra Modi meeting the Prime Minister of Netherlands...

Uttar Pradesh Chief Minister Yogi Aditiyanath shaking hands with Takehiko Nakao...

Uttar Pradesh Chief Minister Yogi Aditiyanath shaking hands with Takehiko Nakao...

Zoo workers carry the carcass of 11-year old Royal Bengal tiger Lachit...

Zoo workers carry the carcass of 11-year old Royal Bengal tiger Lachit...

Rescue workers underway to save the five-year-old boy Mangesh Jadhav...

Rescue workers underway to save the five-year-old boy Mangesh Jadhav...

England's Natalie Sciver plays a shot against Pakistan during the ICC...

England's Natalie Sciver plays a shot against Pakistan during the ICC...

Indian boxer Vijendra Singh and Chinese boxer Zulpikar Miamiatiali...

Indian boxer Vijendra Singh and Chinese boxer Zulpikar Miamiatiali...

A gray heron (Ardea cinerea) stands next to a pond and...

A gray heron (Ardea cinerea) stands next to a pond and...

A vehicle wades through a waterlogged road...

A vehicle wades through a waterlogged road...

A lightning strikes near the Heilig Kreuz church...

A lightning strikes near the Heilig Kreuz church...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.