March 09, 2021
The ten-year bailout package began
Under a turnaround plan approved by the previous UPA regime, Air India is to
receive up to Rs 30,231 crore from the government subject to meeting certain
performance thresholds.The Parliamentary Standing Committee on Transport,
Tourism and Culture concluded that the government should review its decision to
privatise or disinvest Air India and explore the possibility of "an alternative
to disinvestment of our national carrier which is our national
pride"."Substantial ownership and effective control of Air India shall continue
to be vested in an Indian national," the government had said.
While foreign
direct investment of up to 49 per cent has been allowed in the debt-laden
carrier, efforts are on to ensure a smooth strategic disinvestment and a group
of ministers are weighing various options."Various options are under
consideration to protect the interests of the employees," Civil Aviation
Secretary R N Choubey told PTI.Meanwhile, a parliamentary panel is likely to
suggest that Air India should be given at least five years for revival.Air
India, estimated to have a debt burden of more than Rs 50,000 crore, is staying
afloat on taxpayers money and the divestment plan is aimed at reviving the
airlines fortunes.Sources in the know said the government is mulling providing
airline employees the option of joining public sector companies.Various Air dx
cooling unit India unions are opposed to the divestment plan.The move has
also been opposed by the Centre of Indian Trade Unions (CITU) and RSS-affiliated
Swadeshi Jagaran Manch, among others.His response came to queries on whether the
government is looking at giving Air India employees the option to join public
sector firms apart from extending VRS package. Air India and its subsidiaries
have around 29,000 employees, including those on contract.On January 10, the
government allowed overseas entities, including foreign airlines, to own up to
49 per cent stake under the approval route in Air India subject to certain
conditions.Civil Aviation Minister Ashok Gajapathi Raju had said permitting 49
per cent foreign direct investment in Air India brings the airline at par with
other domestic carriers and does away with the preferential treatment that was
extended to the national carrier. The ten-year bailout package began from
2012..A group of ministers is in the process of finalising the modalities for
the proposed strategic stake sale and expression of interest is likely to be
invited from bidders soon.New Delhi: The government is exploring options of
absorbing Air India employees in public sector enterprises and voluntary
retirement package as it moves ahead with the airlines disinvestment amid stiff
opposition from worker unions, sources said.The possibility of having a VRS
package is also under consideration, sources said while adding that a final
decision is yet to be made
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