New Delhi, June 28: In order to fine tune the working of loss-making national carrier, Modi Cabinet today approved the much awaited disinvestment process of Air India. Informing about this development Finance Minister Arun Jaitley said, “In-principle approval for Air India disinvestment has been given”. He further mentioned that a group under the chairmanship of the Finance Minister will decided the future action plan of disinvestment process, proposed by Civil Aviation Ministry.
According to media reports, the Tata Group in partnership with Singapore Airlines is looking forward to buy India's national carrier Air India from the government. The government think tank NITI Aayog has recommended complete privatisation of the airline, which has a debt burden of over Rs 52,000 crore.
Air India is the biggest international carrier from India with a 17 per cent market share. It also controls 14.6 per cent of the domestic passenger market. In the year 2012 Air India was bailed out with $5.8 billion of federal funding. Now Central government under Prime Minister Narendra Modi has been exploring ways to revamp the structure of loss-making national carrier.