According to reports, the government may appoint a committee to examine stake sale in Air India for meeting its revenue targets for next year
The government may examine the possibility of selling up to 49% of its stake in national carrier Air India, says a report from NewsRise citing an unnamed official.
According to the report, the government is planning to set up a committee, comprising four to five members from the finance ministry, ministry of civil aviation as well as cabinet secretariat and Air India that will discuss the asset sales for meeting the revenue targets in FY2017.
Few days ago, Mahesh Sharma, state minister for civil aviation told the Rajya Sabha that the national carrier is expected to make an operational profit of Rs8 crore by the end of this fiscal. RN Choubey, the secretary of civil aviation too had told reporters in Hyderabad that Air India will make a net profit in 2019.
During the April-September period, the airline reduced losses by half to Rs1,245 crore. Net losses are now projected to decrease by more than half to Rs2,636 crore in the 2016 financial year from a year ago. However, it still has accumulated losses of over Rs35,000 crore and a debt of over Rs45,000 crore.
Air India, after ruling the skies for several decades is now positioned at third place behind private carriers, IndiGo and Jet Airways.