New Delhi: Union Minister for Civil Aviation Hardeep Singh Puri on Saturday (August 1) told ET Now that that the government wants to sell Air India as a commercially viable going concern and will not extend bids deadline beyond August 31.
Talking about the steps that the government has been taking to make the national carrier commercially viable, Puri said: "So, if you curtail expenditure and make it an economically viable lean organization it is more attractive to buyers. And, there is enough interest."
"India and Air India are a sui generis case. We have today the world's third-largest civil aviation market. We are going to be the third-largest market in a few year's time. How many countries do you have which have a footfall of 435 million passengers? We have just a 7 per cent penetration and we were at one stage registering a 17 per cent of growth in pre-covid times.
Puri further said that entities have shown interest in Air India. Giving further details, he said that a combination of people have shown interest. "There is a fair amount of interest. And, even during Covid there are people outside. Now, that you can have 100 per cent FDI in the aviation space," he added.
Puri further said that entities have shown interest in Air India. Giving further details, he said that a combination of people have shown interest. "There is a fair amount of interest. And, even during Covid there are people outside. Now, that you can have 100 per cent FDI in the aviation space," he added.
He further said that the way aviation is going to evolve post-Covid, in that sense, Air India is going to be a very attractive buy.
On June 28, the government had extended the deadline to bid for Air India for the third time, till August 31, due to the Covid-19 pandemic which has impacted global economies. The last date for intimation to qualified Bidders has been extended till September 14. The extension has been granted by two months.
'Air bubbles' to be established with neighbouring countries
The minister said that 'Air bubble' agreements have been signed with the USA, France, Canada, Germany, and several other countries under the Vande Bharat Mission.
He further said that a similar agreement has also been signed with the UK, and the UK govt is in the process for leasing of aircraft.
Furthermore, he told ET Now that the government is in the process to strike similar 'Air Bubble' agreements with the neighbouring countries. "I met the Foreign Minister yesterday, in wanting to have bilateral civil aviation flights."
KEY HIGHLIGHTS
Hardeep Singh Puri said that the government will not extend bids deadline for Air India beyond Aug 31
On June 28, the government had extended the deadline to bid for Air India for the third time, till August 31
'Air Bubble' agreement has also been signed with the UK, and the UK govt is in the process for leasing of aircraft