Com­mit­ted Ac­tion Plan Needed for AI Sur­vey lauds de­ci­sion to pri­va­tise Air In­dia to en­hance op­er­a­tional and man­age­ment ef­fi­ciency

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New Delhi: The Eco­nomic Sur­vey has pitched for a com­mit­ted ac­tion plan on "pri­vati­sa­tion and dis­in­vest­ment of Air In­dia to en­hance its op­er­a­tional and man­age­ment ef­fi­ciency," ter ming the gover nment’s an­nounce­ment to pri­va­tise the na­tional car­rier as a “well thought-out” de­ci­sion.

It is a ma­jor car­rier of in­ter- na­tional traf­fic to and from In­dia, ac­count­ing for 11.4% of the to­tal in­ter na­tional travel, it added. In June, the Cab­i­net Com­mit­tee on Eco­nomic Af­fairs (CCEA) gave its in-prin­ci­ple ap­proval to the strate­gic di­vest­ment of Air In­dia and its five sub­sidiaries. A group of min­is­ters, headed by fi­nance min­is­ter Arun Jait­ley, is work­ing on the modal­i­ties of the pro­posed di­vest­ment.

The air­line is sur­viv­ing on tax­pay­ers’ money. The tur naround plan, ap­proved by the pre­vi­ous UPA gover nment in 2012, pro­vides for eq­uity in­fu­sion of .₹ 30,231 crore up to 2021, sub­ject to the na­tional car­rier achiev­ing cer­tain mile­stones.

As part of the plan, var­i­ous steps have been taken to cut costs and losses. Th­ese in­clude route ra­tio­nal­i­sa­tion and en­hanced util­i­sa­tion of new fleet.

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