The divestment of Air India in its present form is off, as the Centre did not receive a single bid, but the government is committed to its strategic divestment, Jayant Sinha, Minister of State for Civil Aviation, said here on Wednesday.
“Nobody expressed interest in that (divestment of Air India) during the process. Now we have to move forward and consider other options,” he said when asked whether the government is still actively looking for a strategic investor for Air India.
He was speaking at a press conference organised to list out the achievements of the government in the last four years. .
This is the first time that a Minister has spoken at an open forum about the status of Air India’s divestment since May 31, when it was announced that not a single bid had been received for the 76 per cent stake in the airline.
Both Sinha and Union Civil Aviation Minister Suresh Prabhu felt Air India is suffering from legacy issues in terms of the huge interest burden that the airline has to service. The two Ministers indicated that the strengthening of the rupee, rising interest rates, hike in oil prices, and the external environment were among the reasons the airline failed to attract any bidders.
A high-powered committee has been set up under Finance Minister Arun Jaitley to look at the various options available with regard to Air India, Prabhu said.
Globally competitive
Pointing out that Air India is the national flag carrier, and has an important role to play the nation’s aviation sector, Prabhu said the government will do everything to ensure its health and progress.
Sinha added that the government is committed to make Air India an independent, globally competitive and successful airline.