Question: The Union Government has announced for the strategic disinvestment of Air India. As per the announcement, what percent of disinvestment is approved for the Air India?
(a) 25%
(b) 49%
(c) 75%
(d) 100%
Answer: (d)
Related facts:
- Hardeep S. Puri, Minister of State(I/C), Ministry of Civil Aviation on January 27, 2020 informed that the newly constituted Air India Specific Alternative Mechanism (AISAM has invited for Strategic Disinvestment of Air India.
- The Government has invited disinvestment of Air India`s 100% share.
- The Air India along with Air India Express has 146 aircraft in its fleet out of which 82 are owned by it. It has worldwide bilateral rights and spread over domestic as well as international slots.
- Air India and Air India Express have almost 51% share of the international traffic to/from India among Indian carriers and 18 % share including global carriers (ex-India).
- Air India has coverage of 98 destinations with 56 domestic and 42 international destinations. Air India offers 75 additional destinations through its secondary network of code share operations.
- Air India and Air India Express have a combined revenue of Rs.30,632 crore in 2018-19, which is the highest among Indian carriers.
- Air India + Air India Express employee cost as % of revenue is about 11% which is comparable to Indian carriers and much lower to International carriers.
- Even after infusion of about Rs.30,500 crore as per Turn Around Plan since 2012, Air India has been running into losses year after year.
- Due to its accumulated debt of about Rs.60,000 crore, its financial position is in a very fragile condition.
Links:
https://www.financialexpress.com/industry/air-india-disinvestment-government-to-sell-100-per-cent-stake-in-national-carrier-issues-bid-document/1835856/
https://pib.gov.in/PressReleseDetail.aspx?PRID=1600699