Divestment in benefit of airline company, states Air India CMD

Express News Global

By Express News Service|Published: 18th July 2017

Divestment in benefit of airline company, states Air India CMD
Divestment in benefit of airline company, states Air India CMD

NEW DELHI: Air India on Tuesday rejected any possibility of prospective layoffs following the federal government’s choice to offer its stake in the nationwide provider. In the very first official interaction with the workers over the federal government’s choice to take out of the nationwide provider, Air India CMD (Chairman and Managing Director) Ashwani Lohani likewise looked for to ease the issues of staff members and ensured them that their interests would be “secured” throughout the procedure of divestment.

Lohani called the divestment a “win-win service” in a letter resolving the workers. He stated, “I want to assure all my workers that throughout the procedure of disinvestment, the airline company and the federal government management wish to secure your legitimate and authentic interests and make sure that appropriate steps to this result are put in location.”

Lohani likewise composed that ownership modification will introduce a business culture where benefit would be much better rewarded. Pertinently, the Air India’s leading management missive to its staff members came a day after a group of personnel held a demonstration versus its proposed privatisation over worry of task loss on a big scale.

Backing the federal government’s choice while describing the airline company’s financial obligation of over Rs 50,000 crore, Lohani stated divestment remained in benefit of the airline company as survival with financial obligation is practically difficult for the airline company. “It is the company conviction of the federal government that the procedure of disinvestment is just suggested to make Air India a much more powerful world class airline company efficient in taking on others effectively. This choice is mostly a spin-off of the failure of the airline company to service the substantial collected financial obligation of over Rs 50,000 crore,” Lohani composed.

In the two-page letter, Lohani stated in spite of the federal government’s choice to privatise the airline company, Air India would check out methods to increase its market share and addition of brand-new locations to its network would continue “unabated”. Last month, the union cabinet offered its in-principle approval for disinvestment of Air India and a group of ministers headed by Finance Minister Arun Jaitley is most likely to settle the techniques quickly.