New Delhi: A decision on the fate of loss-making flag carrier Air India
(AI) needs to be taken soon as the government is “running against time”,
aviation minister Ashok Gajapathi Raju said on Friday at the Express
Group’s Idea Exchange programme.
“We have to take a decision. AI is losing all around and we are running against time. If you keep it going, there are problems, if you close it, there are other problems. Air India is like a patient in an ICU on ventilator. If the ventilator is removed, will the patient die or survive is a question. Before we take a decision, we don’t want to land up in a situation where we haven’t thought of all angles,” Raju said.
The minister underlined that all options for the airline are open, including the difficult call of a stake sale even though given its huge debts and losses it is unlikely to attract investors. AI, the third-largest domestic player with a 16.2% market share, currently has a debt of over Rs 45,000 crore (including working capital loans) and accumulated losses of Rs 30,000 crore. In FY14, it net loss stood at Rs 5,400 crore.
Read news in full 27/09/14 Financial Express
“We have to take a decision. AI is losing all around and we are running against time. If you keep it going, there are problems, if you close it, there are other problems. Air India is like a patient in an ICU on ventilator. If the ventilator is removed, will the patient die or survive is a question. Before we take a decision, we don’t want to land up in a situation where we haven’t thought of all angles,” Raju said.
The minister underlined that all options for the airline are open, including the difficult call of a stake sale even though given its huge debts and losses it is unlikely to attract investors. AI, the third-largest domestic player with a 16.2% market share, currently has a debt of over Rs 45,000 crore (including working capital loans) and accumulated losses of Rs 30,000 crore. In FY14, it net loss stood at Rs 5,400 crore.
Read news in full 27/09/14 Financial Express
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