69-year-old 'wrong step' of nationalisation of private airlines has been corrected: Jyotiraditya Scindia

Union Civil Aviation Minister Jyotiraditya Scindia. Pic/ AFP

A 69-year-old mistake started through the wrong step of nationalisation of an airline that actually belonged to the private sector has been corrected, said Union Civil Aviation Minister Jyotiraditya Scindia on Friday.

Speaking to ANI on completion of Air India disinvestment process, Scindia said that the credit of entire process of disinvestment goes to Prime Minister Narendra Modi.

"It was only possible because of his dedication, resolution and willpower of PM Modi that he took the decision of Air India's disinvestment," he said.

"PM Modi believes that government should not be there to do business but rather create environment to support enterprises and businesses. This transaction can only be completed because of his vision and guidance. I would like to say thanks to all persons in Union Finance Ministry who helped in entire process," the minister said.

The government formally handed over the airline to Tata Group at a ceremony held in the national capital on Thursday. Replying on Tata Group taking control of Government owned Air India, he said that it is a "win-win situation" for all stakeholders concerned, for Government and for Tata Group.

"This transaction represents a huge quantum jump in terms of capabilities in the Civil Aviation sector. It represents culmination of a long process that took almost 20 years to conclude. It also sets in perspective a 69-year-old history which was started on wrong step by nationalisation of an airline that actually belonged to private sector, it is now going back to private sector," Scindia said.

On being asked how this disinvestment decision is going to be a turning point in aviation sector, he said, "You will have a player with tremendous capabilities for international and domestic traffic someone who has a game plan and strategy to ensure best value for a customers." He also said that today a carrier that was running on loss for last 14 years and more than Rs 85,000 crore, had a debt burden of close to around Rs 100 thousand crore, was earning loss of Rs 20 crores a day, which is almost Rs 7500 crore per year -- that money of taxpayers can be used in areas which requires social development, investment.

"It will contribute to the country's economy and at the same time the airline will give tremendous value to its customers," he added.

Replying to a question on where does the government see Air India in a few years in terms of revenue generation, passenger traffic, he replied that it completely depends upon the private sector.

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