Disinvestment of Air India only option: Aviation minister Hardeep Singh Puri

Air India chairman and MD Rajiv Bansal said the company is working on increasing revenues.

Civil aviation minister Hardeep Singh Puri on Thursday said the disinvestment of Air India is the only option available, as like other airlines, the public-sector air carrier has already been under strain since pre-Covid times and that situation has exacerbated as the pandemic continues.

“Anyone who is familiar with Air India, including the people who work there, realise that besides privatisation, we are left with no other option. This is for the simple reason that airlines the world over have been under strain pre-Covid and the pandemic has introduced a new element. The Air India CMD is conducting detailed discussions with all sections of the company, like pilots, engineers, etc,” Puri said at a press conference.

The minister, however, assured the employees that privatisation will be done keeping in view the interest of all the sections involved. He added that the air carrier is working on enhancing economic efficiencies and rationalising operations.

Air India chairman and MD Rajiv Bansal said the company is working on increasing revenues. “At the same time we are trying to contain costs, which is largely through three steps. We can reduce our debt, lease rentals, staff costs and operating costs. We are negotiating with lessors to reduce aircraft rentals. We have made some initial headway and hope that even the current global situation, we will be able to negotiate an improved deal,” he added.

Bansal said Air India has also reduced it employee costs and laid off some staff who were working with it after their retirement. “We have brought in some policies that will cut down costs. We are in negotiations with pilots, cabin crew, etc. We are also looking at cutting costs by renegotiating with hotels and transport providers,” he added.

On questions about salary and job cuts, Puri said, “There is an ongoing negotiation and all airlines are going through this. We are all going through pay cuts. The CMD said there were people who had retired. There may be people who are on contracts which have expired. Then there may be others. What are the options with us?”
The minister said cuts will be across the board but it will be determined by the CMD and the board.

“We are in active consultation with all segments concerned and you have to decide whether Air India will survive. If Air India packs up, none of them (employees) will get a job. Today, there is a surplus of aircraft, trained people, etc. All airlines are facing these issues,” Puri added.