The Centre of Indian Trade Unions (CITU), affiliated to the CPI (M), on Wednesday voiced its opposition to the Centre’s move to consider privatisation of Air India, saying the move was not required as the national carrier was registering profits in recent times.
CITU said the Air India management should not be held responsible for “bungling and disastrous experiments by successive governments” which had left the national carrier, which was registering profits till 2007, debt-burden.
“After prolonged losses since 2008, Air India has started making operating profit. For the year 2015-16, it was ₹105 crore and for 2016-17, estimated operating profit is going to be around ₹300 crore,” Tapan Sen, general secretary at CITU said.
Terming the airline’s huge debt as the main reason behind its accumulated losses, it criticised any move to write off the airline’s debt to pave the way for private investors. “Had the same magnanimity of writing off debt been offered to Air India, it could very well eliminate its huge accumulated losses substantially,” Mr. Sen said.
Bharatiya Mazdoor Sangh (BMS) also opposed the proposal to divest stakes in the national carrier. “We strongly oppose any move to privatise Air India. Government should take steps to turn around the airline and refrain from any decision to sell stakes in our national carrier which should always be the last option,” BMS President Saji Narayanan said.
Seeking investor
Finance Minister Arun Jaitley had said in an interview last week that government is looking for a strategic investor in Air India. “So history has given us a second chance that a good investor should come, which has credibility so civil aviation ministry will consider it,” Mr. Jaitley said.
