Singapore Airlines to investment Rs 3,194.5 crore in Air India post-merger of Vistara
Singapore Airlines is set to make an additional investment of Rs 3,194.5 crore in Tata Group-owned Air India post-merger of Vistara in November.
The Centre of Indian Trade Unions (CITU) on Thursday said the government’s move to allow 49 per cent FDI in the country’s national carrier Air India was meant to expedite its privatisation.
CITU general secretary Tapan Sen said the airline’s privatisation would give foreign entities control over the national carrier, which is a public sector company with a huge asset base and a high-revenue earning international service network.
The government is citing huge losses of Air India to justify its privatisation, Sen said. But the fact is that Air India was pushed to this situation not because of its management’s failure, but owing to imposition of disastrous decisions on the company by successive governments at the Centre, he added.
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Decisions like hasty merger of Indian Airlines and Air India, forcible procurement of huge fleet of aircrafts from foreign companies through direct purchase, were imposed on the company that resulted in an unbearable burden of indebtedness, Sen said.
Despite such reckless and imprudent decisions by successive governments, Air India has struggled to come back to operating profit during the last three years, Sen said.
Even then, the present government decided to privatise the national carrier, and to hasten up the process, foreign companies are being invited to take over, CITU said.
The decision would go against the Parliamentary Standing Committee on Transport, Tourism and Culture, represented by all political parties including BJP, which had unanimously recommended not to privatise Air India.
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