The Aviation Ministry is likely to finalise a Cabinet note on privatization of Air India soon. The note will be taken up in Cabinet in next 2 weeks, sources told CNBC-TV18.
Sources further said that the note is unlikely to suggest contours of divesting the state-run airline. The government is likely to set up an expert panel to decide on further course for the Air India.
This panel will include financial experts and government secretaries, sources said.
Earlier this week, Minister of State for Civil Aviation Jayant Sinha said that the ministry is in the process of preparing a Cabinet note.
Air India is saddled with nearly Rs 50,000 crore debt and has managed to stay afloat on Rs 30,000 crore bailout package that was extended by the UPA regime.
Finance Minister Arun Jaitley as well as the government’s think-tank NITI Aayog has proposed divestment of the ailing airline to make it stable and viable.
Air India employees have taken to cutting costs through several ways --the report quotes a senior official as having requested the management to take-off salad from the menu and have fewer magazines.
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