In the wake of its proposed privatization, the government has asked Air India to put a freeze on large-scale promotion and appointments.
A new flights has to be started only when it is extremely necessary and after due diligence from commercial aspect.
"The direction came almost a week back. It says that due to impending privatization, no major initiatives have to be taken up. There will be freeze on appointments and promotions," an official source told IANS.
The direction has come from the Department of Investment and Public Asset Management or DIPAM.
After failing to find a bidder in its previous term, the Modi 2.0 government is working on war-footing to sell Air India to a private player. It has already reconstituted the group of ministers (GoM) to decide the course of privatization.
Consulting firm EY is already working to finalize preliminary information memorandum (PIM) to invite expression of interest (EoI) from prospective bidders.
"This time, we have no doubt over disinvestment. The speed at which things are moving, the airline's ownership would be transferred to a private party," said a senior Air India executive.
Air India has a total debt of about Rs 58,000 crore. The cumulative loss of the national carrier is to the tune of Rs 70,000 crore. In the financial year ending March 31, 2019 the airline is estimated to have reported a loss of Rs 7,600 crore.
Civil Aviation Minister Hardeep Singh Puri this week said that Air India has to be privatized in order to save it. He suggested that government was not equipped to run an airline where operational decisions on a day to day basis have to be taken immediately rather than following a bureaucratic process or going for tender process.
"Left to myself, I would all be interested entirely in supporting the public sector. But, the question arises: is the government equipped to run an entity, like Air India, where operational decisions on a day to day basis have to be taken on the spot?" Puri said in the Rajya Sabha.
The reconstituted GoM headed by Home Minister Amit Shah is expected to meet in the next few weeks to take decisions pertaining to Air India's privatization.
Jiten accuses RO of West Parliamentary seat for being ‘biased’ in election process; writes ECI
The Leader of Opposition and also the CPI(M) state secretary Jitendra Chaudhury on Thursday accused the Returning Officer of the West Parliamentary constituency of the Lok Sabha Dr Vishal Kumar over his ‘discriminatory’ attitude towards the opposition parties.
MHA extends AFSPA in parts of Arunachal and Nagaland for 6 more months
The Ministry of Home Affairs (MHA) has extended the Armed Forces (Special Powers) Act (AFSPA) in certain districts of Nagaland and Arunachal Pradesh for another six months with effect from April 1, officials said on Thursday.
Arunachal was, is, and will remain an integral part of India: MEA
The Ministry of External Affairs (MEA) said on Thursday that China's repetitive claims on Arunachal Pradesh will not change India's position, and the northeastern state will remain an integral and inalienable part of India.
‘To browbeat and bully others is vintage Congress culture', says PM Modi on lawyers’ letter to CJI
Reacting to an open letter to the Chief Justice of India, D.Y. Chandrachud, which was signed by over 600 advocates on Thursday, Prime Minister Narendra Modi said that to "browbeat and bully others is the vintage culture of the Congress".
'Unacceptable, unwarranted': India again slams US' remarks on Arvind Kejriwal
Calling the US State Department's remarks on the arrest of Delhi Chief Minister Arvind Kejriwal "unwarranted", India on Thursday said that any such external imputation on the electoral and legal process is completely unacceptable.
Excise policy case: Delhi court extends CM Kejriwal's ED custody till April 1
CM Kejriwal, whose alleged role in the excise policy scam is being probed by the Enforcement Directorate (ED), was produced before Special Judge Kaweri Baweja of the Rouse Avenue Court on the expiry of his six-day ED remand on Thursday.
CM not above law, says ED as Kejriwal questions rationale behind his arrest
"The case has been going on for two years. The case was filed on August 17. No court has found me guilty. There are no charges against me nor has any case been filed against me. But I have been arrested," he said.
Ukrainian FM arrives in India to build on talks between PM Modi, Volodymyr Zelenskyy
In a first high-level visit by a Ukrainian leader since the start of hostilities with Russia in 2022, Kuleba began his two-day official visit at the invitation of External Affairs Minister S. Jaishankar.