Air India divestment: After the government failed to get bidders for the beleaguered state-run carrier Air India, minister of State for Civil Aviation, Jayant Sinha said that market conditions were not conducive enough to elicit interest.
Air India divestment: After the government failed to get bidders for the beleaguered state-run carrier Air India, minister of State for Civil Aviation, Jayant Sinha said that market conditions were not conducive enough to elicit interest. “The conclusion that one would come to is to say that market conditions and industry dynamics are such that today people would not be that enthused about the disinvestment process that was underway as far as Air India is concerned,” Jayant Sinha told CNBC TV18.
Asked whether the government will look at LIC toi rescue Air India, Jayant Sinha said that he cannot speculate about it now. “We are considering all alternatives that will be in the national interest and we will take them through the process and undertake those decisions that are the best for the people of India. Please be reassured of that,” he added.
Asked about what would be the way forward for Air India, Jayant Sinha said that in pursuit of its overriding objective, the government has been considering disinvestment alternatives. “We have been considering a range of financing alternatives, and we have also been looking at a variety of initiatives that will improve operational efficiency, improve obviously our passenger revenues, and our loads and our yield factor. So we are looking at all of that,” he told the channel.
In the same address, Sinha said that the objective is to make Air India a globally competitive airline. “As I said, whether it is financing, whether it is operations, whether it is passenger service, we are committed to ensuring that Air India thrives, prospers, and is really globally competitive in every way and those are all the steps that we are undertaking right now and this of course for us even as the disinvestment process is concerned, opens up many possibilities,” he said in the interview.