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The Union Cabinet will soon take a call on privatisation of loss-making Air India with NITI Aayog suggesting that taxpayers' money being pumped into the airline can instead be used on health and education.
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Updated : May 31, 2017, 11:01 PM IST
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The Union Cabinet will soon take a call on privatisation of loss-making Air India with NITI Aayog suggesting that taxpayers' money being pumped into the airline can instead be used on health and education.
Staying afloat on little over Rs 30,000 crore bailout package extended by the previous UPA regime, Air India is working on ways to improve its financial position amid stiff competition. Civil Aviation Ministry is already looking into the recommendations made by NITI Aayog for the national carrier's revival.
Finance Minister Arun Jaitley had last week pitched for Air India's disinvestment saying the carrier's market share is just around 14 per cent whereas the debt burden is Rs 50,000 crore. A top government official today said the Cabinet is expected to take a decision on whether to privatise Air India, whose financial situation is "very bad". "Financial position of Air India is very bad. Niti Aayog's view is that government should spend money on health, education, instead of spending Rs 30,000 crore on Air India," the official told
