NEW DELHI: With the Centre allowing foreign airlines to invest 49 per cent in Air India, Civil Aviation Minister Ashok Gajapathi Raju said the decision would give a boost to the national carrier and that several foreign airlines have already expressed interest in buying a stake in AI. Excerpts from his interview.
Q: What does today’s decision mean for Air India?
A: Earlier, it (foreign investment) was not there and it is now applicable in Air India. Other airlines were allowed and now Air India is at par with them within the country and in a way it’s not a differential treatment.
Q: Has the ministry received interest from foreign players?
A: There are a lot of queries from the day this idea was announced. In fact, IndiGo gave us a letter that they are interested in foreign operations of Air India. We are getting lots of queries (foreign players). Let it take some shape, then we will get some idea. We would like the best players to come and bid.
Q: Will it give a boost to Air India’s performance?
A: In the past three years, AI’s performance parameters have been better. It is the financial part that is bothering the airlines. What it needs is a professional touch. If it happens, it will continue to serve Indian skies. I am hopeful that the Cabinet decision will boost the airline. The decision will probably provide a professional touch.
Rs 50,000 crore debt
AI has a debt of about Rs 50,000 crore. “We are looking at making an aviation debt and aircraft debt that has to be shared by the firm buying the stake, while non-aviation debts are kept separate to make the process viable,” Gajpathi Raju said.