After failing to find takers for Air India’s disinvestment program, the government plans to seek fresh bids in the next financial year, CNBC TV18 reported citing NewsRise. The proposed disinvestment in the national carrier failed to take off as it couldn’t receive any Expression of Interest (EoI) from potential bidders when the deadline ended on May 30. Just days back, Union Minister Jayant Sinha had said that the government holds no plan to exit the national carrier and it remains committed to selling stake in the debt-ridden airline.
He also informed that the government is working on improving performance of the airline. The Union Minister had also said that the debt-ridden Air India has been making losses after its merger with Indian Airlines in 2007.
Surge in competition, high interest burden, increased airport user charges and negative impact of exchange rate variation are among the foremost reasons behind the losses, he said.
Meanwhile, debt-laden national carrier’s board meet yesterday amid consideration by the government to issue a financial package to help Air India. The government is mulling over a plan for equity infusion and a likely waiver loan waiver to improve its finances.
It’s the first meeting of the board after the induction of leading industrialists namely ITC Chairman Y C Deveshwar and Aditya Birla Group Chairman Kumar Mangalam Birla.
According to PTI sources, while Deveshwar attended the meeting, Birla didn’t turn up. A discussion between Finance Ministry and Civil Aviation Ministry is going on for a Rs 11,000 crore bailout package to revive debt ridden Air India.