No plans to privatise Air India – minister
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The Indian government has no plans to privatise Air India, a minister has said.
Bernama reported the country’s Minister of State for Civil Aviation, GM Siddeswara, as confirming the stance to India’s parliament this week.
“[There is] no proposal to privatise Air India is under consideration with the government at present,” Siddeswara was quoted saying.
A statement from the ministry also revealed that the national carrier’s operating loss narrowed to INR21.2 billion (US$353 million) in the 2013-14 financial year, compared to INR38.1bn in 2012-13 and INR51.4bn in 2011-2012.
The post-tax loss narrowed to INR53.9bn in the past 12 months, from INR54.9 and INR75.6bn in the previous two financial years.
The minister cited high operating costs, rising fuel prices, the depreciation of the Indian rupee against the US dollar and the global recession for the losses. The entry of new low-cost carriers into the market and competition from international carriers has also impacted Air India, Siddeswara said.
The national carrier is in the process of reforming however, and this month finally completed its membership into the Star Alliance.
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