Air India Privatization: A parliamentary Panel construed by the Aviation ministry recommended the Government not to disinvest ‘Air India’ and suggested to extend its proposal of privatizing it for at least 5 more years. The panel expressed its opinion that Air India requires 5 more years to help to rejuvenate itself and the time is not ripe yet to disinvesting it. Air India has declared its debts to the tune of Rs 48,877 crore at the end of March 2017.
Don’t Privatize Air India: Says Parliamentary Panel
The committee has observed, Air India is on its way to revival stage and year after year its debts are decreasing. Having discussed with its stakeholders, the committee seems to have come to a conclusion that government should provide a breathing time of 5 more years for its survival.
The panel has also observed that, “the budget provided by the government to Air India has been on a piece meal basis which doesn’t even suffice to pay towards the interest of stakeholders’ investment and strongly recommended the government that the debts of Air India should be written off on humanitarian grounds to help protect the interest of its crew.”
The panel has reminded the government the pivotal role Air India played for the welfare of the nation during untoward circumstances such as natural calamities and other mishaps. Air India is a public-sector unit now. The government of India has been making its efforts to privatize this Air Lines. There have been many agitations by the crew of Air India against the government proposal to disinvent it. Nevertheless, the Air India’s working committee appears to have shown its ‘Balance Sheet’ as to assess how the government is providing the budget on a piecemeal basis that had led the airlines to borrow money on a higher interest rate.
The committee seems to have been convinced that the airline is expected to report a net loss of Rs3,579 crore during the 2017-2018 budget period which is seen as a drastic downfall of its net losses. The panel understood the merit of the argument; if privatization takes place Private airlines take advantage of the situation-leading to the adverse effects to the passengers. The advisory board suggested the government not to disinvest from the most esteemed airlines. The
Air India’s working group said, “Air India incurred into losses due to the strategic policies taken by the Ministry of Aviation and it should be allowed to function as a government PSU with less government intervention”.
The Statistics of Air India proved its point per se fewer incidences of accidents and the struggles it went through to make its passengers satisfied with its services.