Air India chairman Ashwani Lohani wrote to the carrier’s employees on Tuesday, broaching its planned disinvestment for the first time, calling it an “offshoot” a Rs 50,000-crore debt problem which left unresolved could threaten the survival of the company.
A stake sale, in this scenario, “would indeed be a win-win solution”, he said.
“This huge debt has accumulated due to continuous losses over the years. You would, however, appreciate that unless a solution is found to this huge debt, survival, in the long run, is almost impossible and the proposal to consider disinvestment is a step in this direction,” he wrote. “It is the firm conviction of the government that the process of disinvestment is only meant to make Air India a much stronger world class airline capable of competing with others successfully.”
The Union Cabinet earlier this month gave an inprinciple approval for the stake sale. India’s top airline, IndiGo, has written to the civil aviation ministry showing interest in buying the flag carrier.
Lohani said an ownership change would lead to a change in the working environment and work culture at the state-run airline.
“The complexities of working in a PSU (public sector undertaking) environment would get replaced by a corporate culture, a culture in which merit would get a better deal. This should enable a full realisation of the inherent potential of your airline besides creating an environment that would indeed be conducive for all of us who are used to working hard with commitment and integrity,” he said.
Source: Economic Times