• Thursday, March 28, 2024

Business

69-year-old mistake corrected: Scindia after Air India handover

Indian aviation minister Jyotiraditya Scindia (ANI Photo)

By: Shubham Ghosh

A DAY after India’s national carrier Air India was handed over to Tata Group, Indian civil aviation minister Jyotiraditya Scindia on Friday (28) said a 69-year-old mistake has been corrected.

He said the mistake had started through the wrong step of nationalising an airline that belonged to the private sector.

Speaking to Asian News International on completion of Air India disinvestment process, Scindia said the credit for the entire process goes to prime minister Narendra Modi.

ALSO READ: Tatas officially handed over Air India: ‘Delighted to have it back’

Air India plane
An Air India plane (Photo by SAJJAD HUSSAIN/AFP via Getty Images)

“It was only possible because of his dedication, resolution and willpower of PM Modi that he took the decision of Air India’s disinvestment,” he said.

“PM Modi believes that the government should not be there to do business but rather create an environment to support enterprises and businesses. This transaction can only be completed because of his vision and guidance. I would like to say thanks to all persons in the Union Finance Ministry who helped in the entire process,” he added.

The government formally handed over the debt-ridden airline to the Tatas, who founded it nine decades ago, at a ceremony held in the national capital on Thursday (27).

The government formally handed over the airline to Tata Group at a ceremony held in the national capital on Thursday.

Win-win situation for all stakeholders: Scindia

Replying to Tata Group taking control of Air India, Scindia said it is a “win-win situation” for all stakeholders concerned, for the government and for Tata Group.

“This transaction represents a huge quantum jump in terms of capabilities in the Civil Aviation sector. It represents the culmination of a long process that took almost 20 years to conclude. It also sets in perspective a 69-year-old history which was started on wrong step by nationalisation of an airline that actually belonged to private sector, it is now going back to private sector,” Scindia, who was a member of the Indian National Congress under whose rule the airline was nationalised (in 1953). He joined Modi’s Bharatiya Janata Party in 2020 and became the civil aviation minister last July.

On being asked how this disinvestment decision is going to be a turning point in the aviation sector, the minister said, “You will have a player with tremendous capabilities for international and domestic traffic, someone who has a game plan and strategy to ensure best value for customers.”

He also said that today a carrier that was running on loss for last 14 years and more than rupees 85,000 crore, had a debt burden of close to around rupees 100 thousand crore, was earning loss of Rs 20 crore a day, which is almost rupees 7500 crore per year — that money of taxpayers can be used in areas which requires social development, investment.

“It will contribute to the country’s economy and at the same time the airline will give tremendous value to its customers,” he added.

Replying to a question on where the government sees Air India in a few years in terms of revenue generation, passenger traffic, he replied that it completely depends upon the private sector.

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