Civil Aviation Minister Hardeep Singh Puri, on November 27, said that Air India would have to be closed down if it does not get privatized.
Puri was replying a supplementary question in Rajya Sabha that was put forth by AITC member Shantanu Sen. Puri also said that the government would ensure that no job losses would take place in the carrier till its privatisation, and that they would secure a fair deal for all of its employees. .
"Issues being related to current employees, their health cover, how many would remain and what would happen, we are committed to secure a favourable deal for all employees. I would go to that extent," he said.
He also rejected recent reports suggesting that several pilots of Air India are leaving the airline as their salaries were not being paid on time.
"Air India pilots are very well looked after and their salaries in relation to what other air carriers are offering is very good," said Puri.
He further said, "In so far, resignations are concerned, I have not heard of any single case where anybody has resigned".
According to a report that could not independently verified by Moneycontrol, Air India may offer job protection of one year to its 11,000 employees after selling its stake to a private entity.
"The sale and purchase agreement (SPA) agreement will provide that strategic partner shall not retrench any employees of the company for a period of one year," a source told the publication.
The government is expected to issue an Expression of Interest (EoI) soon to invite bids from potential buyers. The Centre will share the SPA separately with bidders during the EoI stage.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
