The Centre is likely to issue the expression of interest (EoI) for divestment of its stake in national passenger carrier Air India by November. According to airline employees, the proposed EoI is slated for early next month in place of October-end, when it was initially planned to be issued.
A meeting was called by the airline’s management to brief several employees’ unions over the proposed divestment process and its ramifications.
Provisions like medical facilities will not be available post-retirement and travel pass on Air India flights will be based on market standards. The unions expressed ‘concerns’ over the lack of information on the divestment process and the future of the airline.
At present, Home Minister Amit Shah heads the panel which is looking after the divestment process. Other members of the panel include Finance Minister Nirmala Sitharaman, Commerce and Railway Minister Piyush Goyal and Civil Aviation Minister Hardeep Singh Puri.
In the previous Modi government, then Finance Minister Arun Jaitley headed the Ministerial panel, called Air India Specific Alternative Mechanism (AISAM). After failing to find a bidder in its previous term, the Modi 2.0 government is working on war-footing to sell Air India to a private player.
Air India has a total debt of about Rs 58,000 crore. The cumulative loss of the national carrier is to the tune of Rs 70,000 crore. In the financial year ending March 31, 2019, the airline is estimated to have reported a loss of Rs 7,600 crore.
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