Will back AI with funds till disinvestment is done: Sinha

Will back AI with funds till disinvestment is done: Sinha

Will back AI with funds till disinvestment is done: SinhaGovt. promises liquidity infusion; monetisation of the carrier’s assets under way

Minister of State for Civil Aviation Jayant Sinha on Thursday said that the Government of India was committed to supporting Air India (AI) with liquidity infusion till the disinvestment process is completed.

The deadline for submission of Expression of Interest (EoI) ended on May 31, with not a single bidder evincing interest in the airline. Since then, salaries of airline staffers were delayed by a fortnight this month and Mr. Sinha, who was here on Thursday, said the Group of Ministers constituted to look at alternatives for Air India’s disinvestment would meet under the chairmanship of Arun Jaitley soon.

GoM to decide

“All these matters are being considered by the alternative group of ministers constituted to look into the issues. They will look into the matters put before them and an appropriate decision will be taken. We are in the process of scheduling a formal meeting,” the Minister said.

On financially supporting AI till a solution is found, Mr. Sinha said, “We are definitely going to provide the necessary liquidity and financial resources, so that Air India continues its very successful turnaround and continues to provide world-class customer service to its passengers and its very talented and hard working employees are paid on time.”

The Minister said monetisation of Air India’s assets, now placed under an asset holding company, was happening simultaneously. The government has proposed to offload 76% equity share capital of the carrier as well as transfer the management control to private players, as per the preliminary information memorandum.

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