Air India sale virtually a free gift to Tatas: Trade Unions

Ten central trade unions on Wednesday criticised the government on the Air India sale saying it is a "virtually a free gift" to the Tatas on the 75th year of Independence.

In a statement, they said they "deplore" the sale in "too less an amount" than what has gone into making Air India a giant carrier.

"This is a gift back to Tata on 75th years of independence after its takeover by the government in 1948 followed by its nationalisation in 1953. Several lakhs crores was infused from the national exchequer to expand its asset base, huge fleet of aircrafts and properties, both in the country and abroad," they said.

"Now the sale-deal with Tata envisages that government will absorb Rs 46,262 crore of the Rs 67,000 crore debt burden of Air India but the assets created by such debt will be handed over to Tata in lieu of only Rs 18,000 crore," the unions -- INTUC, AITUC, HMS, CITU, AIUTUC, TUCC, SEWA, AICCTU, LPF, UTUC -- said.

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This is "virtually a free gift" to the Tatas, which demonstrated the "worst-ever perverted economic deal", it said.

The statement said the trade unions had opposed the merger of Indian Airlines with Air India earlier with the government making "hollow claims" that it would help in mitigating losses and lead to recovery of the airlines.

"The contention of unions was that it would not help in recovery as claimed, rather would be allowed to incur more losses and add debts to it, to pave the way for its sale. The government is silent about how its own policies of handing over profitable routes to their cronies, buying a huge fleet of aircraft when not needed, brought the air carrier to this pass. The truth is before us. India will be perhaps among the few countries, where the government will not own its air carrier," it said.

The unions also said the workers would be "adversely affected" as they are given protection for one year only. Large number of employees are in the age group of 40-55 years which renders them ineligible for jobs in other companies, they said.

"The fallout is not only the assets created over decades with public money being sold out cheaply but it would be harming the public interest as well," it said.

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