Civil Aviation Minister Ajit Singh, on Monday, maintained that state-run Air India needs to be privatised but felt that the time was not ripe for going ahead with the move.
Speaking to the media here, Singh made it clear that there was no plan to privatise the airline as of now. Laden with debts, the AI has been receiving regular equity infusions to keep the airline airborne.
Maintaining that the government would not give any more funds to the airline after the equity infusion of `30,000 crore till 2021, Singh said, “I am firmly of the view that the government should not be in the service sector like hotels.”
“Future governments will have to study the (privatisation) issue. But today, the time and the situation is not correct...This government has only about six months left. There is no plan (for privatising Air India) and the issue is not under active consideration at all,” Singh maintained.
He said it was his personal belief that, in the future, “the government of the day will have to look at privatisation and build a political consensus on the issue before taking a position. I never said I am going to do it,” Singh clarified.
He maintained that Air India would have to fend for itself and its employees and the management would have to realise that aviation was a very competitive market.