Published 21:48 IST, February 12th 2020
Amid Air India divestment plan, CMD Ashwani Lohani rules out shutting down rumours
Speaking at an exhibition, Air India CMD Ashwani Lohani asserted that the airline would not shut down amid the Centre's decision to sell its 100% stake.
Speaking at an exhibition in Mumbai on Wednesday, Air India CMD Ashwani Lohani cleared the air on the future of the airline. Stressing that Air India was not shutting down, he urged the employees not to worry. Moreover, Lohani highlighted that state-run airline was still a great organisation. He mentioned various evacuation stories including Wuhan to buttress his claim.
The Air India CMD remarked, "Air India employees need not worry. Nothing wrong will happen to them... Rumours that Air India is going to shut down are totally false. Air India will continue its operations.”
He added, “Air India is still a great organisation. We are still the country’s biggest airline. The airline has added 12 new international routes without adding a single new aircraft to our fleet. It is always there when the country needs Air India. Recently, we brought back Indians from Wuhan. There are a lot of other evacuation stories.”
Centre's decision on Air India
Lohani's statement assumes significance in the wake of the Centre announcing the sale of its 100 per cent stake in debt-laden Air India. The government has set the deadline for submitting Expression of Interest as March 17, 2020. As a part of the disinvestment, Air India would sell a 100 per cent stake in Air India Express and 50 per cent shareholding in AISATS, an equal joint venture between Air India and Singapore Airlines. The government-owned airline’s interests in entities such as Air India Engineering Services, Air India Air Transport Services, Airline Allied Services and Hotel Corporation of India would not be a part of the disinvestment transaction. As per the bid document, a debt of Rs.23,286.5 crore would remain with Air India and Air India Express at the time of closing of the disinvestment.
Incidentally, this is the second occasion on which the Centre has formally proposed selling a stake in Air India. In 2018, the government not only sought to sell 76 per cent equity share capital of Air India but also invited the private sector to take control of the management. However, the proposal failed to attract any bidders. Recently, Civil Aviation Minister Hardeep Singh Puri had assured Air India employees that all their pending dues would be cleared before the closure of the sale transaction.
(With ANI inputs)
Updated 21:48 IST, February 12th 2020