NEW DELHI: After their “ill-fated” merger in 2007, erstwhile Air India and Indian Airlines lost Rs 83,000 crore. In the 14 years since then, successive governments pumped in Rs 55,000 crore as equity and gave guarantee of Rs 50,000 crore. Combined with debt and other liabilities, said aviation minister Jyotiraditya Scindia, AI’s total bill had risen to Rs 2. 7 lakh crore with losses increasing by Rs 20 crore per day. Scindia spoke to TOI on how AI divestment was achieved and what will it take for airlines in India to emerge from deep losses given the country’s high operating cost structure:
How did you finally manage to divest Air India?
It was a very big responsibility to ensure that it is successfully concluded this time. The entire credit goes to PM Narendra Modi for his steadfast commitment that we can no longer service such a large loss-making enterprise and fritter away the nation’s precious resources just to ensure we have a government airline. AI divestment had to be done for the good of the nation.
