Strongly oppose Air India sale: Mamata

Michele Moreno
March 30, 2018

El Al has stated that Air India had been prioritized, which violates the basic principles of fair competition.

Mumbai:The government is selling a controlling stake in its flagship carrier along with two-thirds of the loss-making airline's about $7.8 billion debt, as Prime Minister Narendra Modi moves ahead with the nation's most high profile asset sale in decades.

The Air India disinvestment transaction will involve Air India, its low-priced arm Air India Express and Air India SATS Airport Services Pvt Ltd.

The Israeli Tourism Ministry has provided Air India with a grant to market its new route as part of a campaign to encourage Indian tourism in Israel.

Netanyahu has said he sees "huge" potential for Israel from the flights over Saudi airspace with "long-term implications". According to the memorandum, the two airlines have attractive slots at capacity constrained airports in the country. This is a significant advantage compared to any new player looking to enter or an existing player looking to expand into the Indian market.

The national airline has 3,739 domestic slots and 2,543 global slots available per week as on December 31, 2017. The airline also has 70 slots a week in the United Kingdom at London and Birmingham, apart from 280 arrival and departure slots in the Gulf including in Abu Dhabi and Dubai.

However, Indigo's state-owned rival has a 16.9 percent share of the worldwide travel market in India. According to the PIM, Air India has 16,834 employees as on December 1, 2017 of which 11,214 are permanent employees. "This includes strategic privatization of Air India".

The Communist Party of India (CPI) today termed "suicidal" the government's decision to privatise Air India and demanded it to roll-back the move. Contingent liabilities would remain with Air India and Air India Express. Government of India (GoI) owns 100 per cent equity of Air India.

Stating the the government has the mandate of the people for this divestment, Sinha pointed out that it had been working day and night to improve Air India's operations. May 14 has been finalised as the deadline for the letter of expression.

Other reports by Insurance News

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