Air India divestment is still on the Government’s radar and will be taken up when the conditions are conducive, RN Choubey, Union Secretary for Civil Aviation, said

He said the Government is committed to divest the airline and will wait for an appropriate time to offer it for divestment again through competitive bid process.

Speaking on the sidelines of the foundation stone laying ceremony of the Civil Aviation Research Organisation at the Begumpet Airport in Hyderabad, Choubey said “We have decided to wait and watch for some time before the conditions get better to offer it for divestment again.”

In a recent interaction with the media, both Prime Minister Narendra Modi and Union Minister Nitin Gadkari said the government will wait for the right time to offer Air India for sale.

On being asked if the delay in divestment would require fresh fund infusion into the airline, the Union Secretary said no such request had come from Air India. “In case they make such request we would look into it,” he said. “Air India managed to break even operationally last year. We will infuse funds if necessary to ensure it sustains its operations without disruption,” he said.

The market conditions have been tough and the spiralling fuel prices too have added another dimension to the stake sale issue. Therefore, it is looking at a situation where conditions are suitable.

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