This is not the appropriate time to divest government stake in Air India (AI), which should be given at least five years to revive and its debt written off, a Parliamentary panel is likely to tell the government.
The panel is also understood to have concluded that the equity infusion in the national carrier, as part of the turnaround plan (TAP), was made on a “piecemeal basis,” adversely affecting its financial and operational performance and “forcing” the airline to take loans “at a higher interest rate to meet the shortfall.” The Parliamentary Standing Committee on Transport, Tourism and Culture concluded that the government should review its decision to privatise or disinvest AI and explore the possibility of “an alternative to disinvestment of our national carrier which is our national pride.”
Observing AI has always “risen to the occasion” at times of need like calamities or political unrest in India or abroad, the Committee said “it would be lopsided to assess and evaluate the functioning of AI solely from business point of view, as has been done by NITI Aayog.”
