New Delhi:
No proposal to privatize India's national carrier Air India is under the consideration of the government at present, Minister of State for Civil Aviation, GM Siddeswara, said today.
While giving details of the losses and the equity for Air India infused by the government in the last three years, the minister listed high operating cost, increase in the prices of aircraft fuel and depreciation of Indian rupee as some of the reasons for the losses the carrier has suffered.
He also blamed entry of low cost carriers in the domestic market and competition from foreign carriers in the international market.
Reports suggest Air India posted a net loss of Rs 5,100 crore in the last financial year and has debts of nearly Rs.40,000 crore on its books.
It hopes to remedy the situation with its entry into the world's largest airlines' club.
Last month, Air India formally became the 27th member of Star Alliance. The membership would give its passengers traveling to the US easier access to many more cities through other Star Alliance members operating in America.
Passengers can earn and burn frequent flyer miles on the entire alliance network and also access lounges of other airlines at various airports.
As a member of the alliance, Air India will be able to code share with 26 other airlines, which means that a passenger can make single bookings across multiple airlines.
While giving details of the losses and the equity for Air India infused by the government in the last three years, the minister listed high operating cost, increase in the prices of aircraft fuel and depreciation of Indian rupee as some of the reasons for the losses the carrier has suffered.
He also blamed entry of low cost carriers in the domestic market and competition from foreign carriers in the international market.
Reports suggest Air India posted a net loss of Rs 5,100 crore in the last financial year and has debts of nearly Rs.40,000 crore on its books.
It hopes to remedy the situation with its entry into the world's largest airlines' club.
Last month, Air India formally became the 27th member of Star Alliance. The membership would give its passengers traveling to the US easier access to many more cities through other Star Alliance members operating in America.
Passengers can earn and burn frequent flyer miles on the entire alliance network and also access lounges of other airlines at various airports.
As a member of the alliance, Air India will be able to code share with 26 other airlines, which means that a passenger can make single bookings across multiple airlines.
Track Latest News Live on NDTV.com and get news updates from India and around the world
