04 December Saturday
Air India sale puts 42.82 percent of India's aviation revenue into Tata's hands

Stop Sale of Public Assets; Trade Unions Write To PM

Web Desk(TVM)Updated: Wednesday Oct 20, 2021

New Delhi : Ten central trade unions wrote to Prime Minister urging to step back from selling the nation’s public assets including Air India.

The letter points out that, while corporates and media are celebrating sale of Air India, majority public are disgruntled.  In 2019-20, the fiscal during which  Air India was planned for sale, losses were arrived upon by taking the operating profits minus interest arrears on loans totaling 1787 crores and depreciation. In fact, Air India was led into losses by actions of the government from time to time. 111 airplanes were purchased all at once in 2005 – 2006. Also, Air India was merged with Indian Airlines. The government ignores interests of public sector units in its zeal to promote private companies. The ongoing efforts are aimed to cover that aim, read the letter.

Gift For Tata
The argument that Tata clinched the Air India deal amid fierce competition, is far from truth.  Five of the total seven companies that put in  applications were disqualified at the very beginning,  leaving just one competitor I.e. the  debt laden Spice Jet. While government set Rs 12,906 crores as minimum price, Spice Jet quoted Rs 15,100 crores. Subsequently the deal was struck for Rs 18,000 crores.

Air India, Vistara and Air Asia together raked up Rs 40,500 in  earnings last year.  The aviation industry together accounts for Rs 95,700 crores annually, meaning, the  sale of Air India would funnel 42.32 % of India’s airliner revenues into Tata’s kitty.

Also, the fate of employees remains uncertain, said CITU, INTUC, HMS, AIUTC, TUCC, Seva, AICCTU, ALPAF, UTUC in their letter.