'Would Have Bid For Air India, If I Was Not A Minister': Piyush Goyal In Davos

Govt-owned Air India has suffered massive losses over the pastGovernment is now in the process of disinvestment of the airlineSecond attempt to sell Air India and its subsidiary Air India Express has begun

Second attempt to sell Air India and its subsidiary Air India Express has begun. (File Photo/ AFP)

Davos: Union Railway Minister Piyush Goyal on Thursday said that if he was not a minister he would be bidding for the debt-laden airline Air India. The Indian government-owned airline has suffered massive losses over the past and the government is now in the process of finalising the contours for its disinvestment.  Air India’s losses currently stand at around Rs 80,000 crore. “If I wasn’t a minister today, I would be bidding for Air India. It has some of the best bilaterals the world over... a well managed and efficient Air India with lot more good aircraft put in using these bilaterals is nothing short of a gold mine to my mind,” Goyal said in Davos, Switzerland, during a session on ‘Strategic Outlook: India’ at the World Economic Forum (WEF) annual summit. Bilaterals refers to an agreement between two countries that allows each other's airlines to operate services with a specific number of seats. Responding to a query about proposed disinvestment of Air India, BPCL and other companies, Goyal said in the first term, the government had inherited an economy which was in pretty terrible shape. "Steps were taken to put the economy back in shape and if the government had looked at divesting these jewels, it would not have got a great value," he said. Meanwhile, the second attempt to sell Air India and its subsidiary Air India Express has begun with the national career floating tender for physical aircraft inspection of its fleet and data room related matters. The bid has been invited for technical due diligence, aircraft documentation and physical inspection for the 125 aircraft of Air India and 25 Boeing aircraft of Air India Express. The move is aimed at facilitating disinvestment of the two carriers. "AI (Air India) invites bids from experienced and reputed Aircraft Asset Management companies for carrying out Technical Audit and due diligence of its owned and leased fleet," news agency IANS quoted the airline as saying in tender document dated January 10. The tender document said that the technical due diligence is to be carried out on the entire fleet of Air India and Air India Express listed in the Air Operators Certificate (AOC) issued by aviation regulator, the Directorate General of Civil Aviation (DGCA). As per fleet details, Air India has 47 wide-body aircraft and 78 narrow-body jets. Out of 125 aircraft, the airline owns 52 aircraft with remaining planes being on finance lease, dry lease and sale and lease back terms. Air India has 30 of its aircraft grounded with 15 either not operating or not part of AOC. Air India Express owns 8 aircraft while the remaining being on dry lease or finance lease. Air India has been surviving on a Rs 30,000 crore bail-out package cleared by the UPA-II government in April, 2012. The Modi government has decided to completely exit Air India as it does not want to provide any further financial support to it and instead direct the funds towards building social infrastructure such as hospitals, schools and roads.