President and PM may get new planes after Air India privatisation

The President and the Prime Minister will likely fly in new planes for their long-distance travel after the privatisation of Air India.

According to a Business Standard report, Air India Boeing 747, which is currently used by PM and President for long duration air travel, will be replaced and the Air Force will take charge of the new duties.

Although the planes for transcontinental flights were owned by Air India, they were operated by IAF pilots and technical crew. These aircraft have specially-crafted interiors, state-of-the-art communication systems, and defensive and counter-measure systems.

Air India On A Wing And A Prayer

The government has also been mulling to replace the ageing Boeing 747 with Boeing 777s. And, there is a possibility that the Indian Air Force will operate and also own them.

However, to finalise this matter clearance will be required from multiple departments, including Prime Minister’s Office and the civil aviation and defence ministries.

India's flag carrier is on the block after Prime Minister Narendra Modi's Cabinet approved plans to privatise the loss-making airline - selling part or all of the company and ending decades of state support.

The airline is dealing with debt of Rs 50,000 crore which was escalated after Air India bought 111 new aircrafts.

According to sources, writing off the amount will impose a burden on the exchequer as the government will have to take over the loans extended by banks. The lenders have refused to restructure the loan as it is seen to be an unviable proposition.

The stake sale will see Tata Sons in the race, according to media reports. The group has informally expressed its desire to buy the Maharaja but there has been no official communication from the group or the government.

The Union Cabinet has also decided to set up a committee—to be headed by Finance Minister Arun Jaitley—to look into and recommend steps for strategic divestment of Air India.