<p>Centre on Thursday said there was no option but to go in for privatisation of Air India and that the national airline was working on a series of measures to cut costs.</p>.<p>Civil Aviation Minister Hardeep Singh Puri said steps such as reducing staffing costs were necessary for Air India to survive and if the airline “packs up, nobody will get a job” as the civil aviation sector world over was going through stress.</p>.<p>Air India Chairman-cum-Managing Director Rajiv Bansal said he was working to steadily increase revenues and contain costs by reducing debt, aircraft lease rentals, as well as staffing and operating expenses.</p>.<p>Bansal said the airline had laid off employees who had already retired, but were re-employed and was in negotiation with pilots and cabin crew, besides re-negotiating rentals with hotels and transporters.</p>.<p>Bansal said Air India also wanted to reduce its dependence on the exchequer for funds. Air India’s decision to ask employees to opt for leave without pay ranging from six months to five years kicked off a controversy, with opposition dubbing it as “match-fixing” to make the airline attractive for prospective buyers.</p>.<p>“Leave airline operations to those who know how to run airlines,” Puri said adding that measures such as cutting down costs were necessary for Air India to survive.</p>.<p>The Centre had started the process for 100% sale of stake in Air India in January. The last date for submitting expressions of interest has been extended to August 31.</p>
<p>Centre on Thursday said there was no option but to go in for privatisation of Air India and that the national airline was working on a series of measures to cut costs.</p>.<p>Civil Aviation Minister Hardeep Singh Puri said steps such as reducing staffing costs were necessary for Air India to survive and if the airline “packs up, nobody will get a job” as the civil aviation sector world over was going through stress.</p>.<p>Air India Chairman-cum-Managing Director Rajiv Bansal said he was working to steadily increase revenues and contain costs by reducing debt, aircraft lease rentals, as well as staffing and operating expenses.</p>.<p>Bansal said the airline had laid off employees who had already retired, but were re-employed and was in negotiation with pilots and cabin crew, besides re-negotiating rentals with hotels and transporters.</p>.<p>Bansal said Air India also wanted to reduce its dependence on the exchequer for funds. Air India’s decision to ask employees to opt for leave without pay ranging from six months to five years kicked off a controversy, with opposition dubbing it as “match-fixing” to make the airline attractive for prospective buyers.</p>.<p>“Leave airline operations to those who know how to run airlines,” Puri said adding that measures such as cutting down costs were necessary for Air India to survive.</p>.<p>The Centre had started the process for 100% sale of stake in Air India in January. The last date for submitting expressions of interest has been extended to August 31.</p>
