The 69-Year-Old Mistake Has Been Corrected: Jyotiraditya Scindia on Air India Privatization
The government of India completed the process of Air India takeover by Tata Sons’ Group Talace Private Limited yesterday, in an official ceremony held in Delhi.
- Scindia credits the success of Air India disinvestment to PM Narendra Modi.
- The money that was bearing the loss of Air India can now be used for developmental aspects, Scindia says.
- Air India may require a total brand overhaul, say industry experts.
In response to Air India’s privatisation, Union Minister Jyotiraditya Scindia said that nationalising an airline belonged to the private sector was a 69-year-old mistake. Minister sees Air India disinvestment as a mistake corrected. He gave credit for the success of the Air India takeover to Prime Minister Narendra Modi. “It was only possible because of his dedication, resolution and willpower of PM Modi that he took the decision of Air India disinvestment. This transaction can only be completed because of his vision and guidance,” he said. According to the Minister, PM Modi believes in developing a conducive environment for business rather than running a business. He also thanked all stakeholders in Union Finance Ministry who helped with the process. He also acclaimed that it is a win-win situation for all stakeholders involved. With Air India privatisation, Minister expects that the aviation sector will see a player with tremendous capabilities for international and domestic air travel, as the company is now in the hands of ‘someone’ with a robust game plan and strategy to ensure the best value for a customer. He also said that the airline was running on a loss for the last 14 years and had a debt burden of close to Rs 100 thousand crores, implying that the airline was earning a loss of Rs 20 crores a day which equates to Rs 7500 crores per year. The government can now use the money of taxpayers in areas that require social development and investment.
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