With a halt imposed by government at the Air India stake sale in an election year, it has decided to offer required funds for its operations.
The decision within 3 weeks after the recommended 76 percent strategic stake sale in Air India failed to pull any bidder. “Air India will soon fetch funds from the government in order to carry its operations, also it will purchase couple of aircrafts,” the government officials said.
In a high level meeting, wherein Union Minister Arun Jaitley, Piyush Goyal, who is temporarily holding charges of finance ministry, Civil Aviation Minister Suresh Prabhu, Transport Minister Nitin Gadkari and other senior officials were present, this decision came into force.
Officials said, “As of now all airlines are profit generative. Flights are usually packed. With all the cost efficient mechanism in mind, its efficiency shall be improved. It must get support from all sides.”
Officials added, “The aim is to improve the operational efficiency. This will also enhance the morale of employees right from the helm. For this funds would be made available as and when required”.
The government will dissolve the 76% of equity share capital of debt laden carrier and has asked private players to control its management.