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