"VAN" (Delhi Bureau) :: Indian government owned Air India has been asked to freeze all appointments, promotions in the company. The government in the wake of proposed privatisation, has asked Air India to stop large-scale promotion and appointments as per our sources. Further, the govt. has directed airlines to not to start with any new flights, untill it is extremely necessary and after due diligence from commercial aspect. The direction has come from the Department of Investment and Public Asset Management or DIPAM.
The direction came almost a week back. DIPAM said, ''due to impending privatization, no major initiatives have to be taken up. There will be freeze on appointments and promotions.''
After failing to find a bidder in its previous term, the Modi 2.0 government is working on war-footing to sell Air India to a private player. It has already reconstituted the group of ministers (GoM) to decide the course of privatization.
Consulting firm EY is already working to finalize preliminary information memorandum (PIM) to invite expression of interest (EoI) from prospective bidders.
Air India has a total debt of about Rs 58,000 crore. The cumulative loss of the national carrier is to the tune of Rs 70,000 crore. In the financial year ending March 31, 2019 the airline is estimated to have reported a loss of Rs 7,600 crore.
Civil Aviation Minister Hardeep Singh Puri this week said that Air India has to be privatized in order to save it.
Puri suggested that government was not equipped to run an airline where operational decisions on a day to day basis have to be taken immediately rather than following a bureaucratic process or going for tender process.
The reconstituted GoM headed by Home Minister Amit Shah is expected to meet in the next few weeks to take decisions pertaining to Air India`s privatization.
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