The Air India has been suffering heavy losses since its merger with Indian Airlines in 2007 and it has accumulated losses of about Rs 70,820 crore till March 31, 2020.
In a written reply to MP Mahesh Poddar in the Rajya Sabha on the current financial condition of public sector airline company and the Government’s initiative for its disinvestment, Minister of State for Civil Aviation VK Singh said financial bids for Air India are likely to be received from qualified interested bidders by September 15 this year.
The Minister said the major reasons for the losses include high interest the burden on debt due to bulk purchase of aircraft in the past. “The Government has decided to go for strategic disinvestment due to its fragile finances and its continued and accumulated losses,” he added.
