New Delhi: The government may consider selling some of its stake in loss-making national carrier Air India, news agency NewsRise Financial said on Wednesday, citing an unnamed official.
“The government plans to form a four-to-five member panel, made up of officials from the finance ministry, the civil aviation ministry, the cabinet secretariat and the company, to consider selling a stake in Air India to meet its revenue target from state asset sales next fiscal year, according to NewsRise.
Sources in the government, however, told this newspaper that the government has not taken any such decision so far. Sources in Air India said that the government will not sell its stake in Air India. The government is the sole owner of the loss-making national carrier, which is implementing a turnaround plan for its financial revival.
Air India has been incurring losses of thousands of crores every financial year.
The government is also financially backing the airline which has been able to survive only due to the government’s financial package.
A recent report jointly prepared by Ficci and KPMG had suggested the government to the government should sell Air India and use the Rs 30,000 crore that was earmarked for Air India to subsidise air travel of common man by lowering jet fuel price. The report claimed that the airline business requires split second operational decisions which is not possible in the government environment.
