Government unlikely to go for any dilution of stake in Air India

NEW DELHI: The government is unlikely to go for any dilution of its stake in national carrier Air India in the near future and divestment may be "looked at" once the airline improves its balance sheet.

Noting that Air India has seen a marked improvement in its on-time performance, which is being monitored by the Civil Aviation Ministry on a day-to-day basis in the last few weeks, highly-placed sources said that the reason for flight delays like shortage of flight and cabin crew is being addressed by the management.

"As part of its turnaround plan, Air India will be getting equity (Rs 30,000) crore for a certain period. That process is still being completed. So right now Air India not in the divestment list," a source said.

Ruling out even a "rethink" by the government on the national carrier's partial or complete privatisation at this stage in the face of staggering losses, the sources said that disinvestment cannot happen unless the huge debt and mounting losses get wiped out from the balance she ...Read More: http://goo.gl/IdKRCi