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A-I, IA disinvestment soon: minister

Union Civil Aviation Minister Ananth Kumar today said the government ''will take a decision with an open mind on the issue of disinvestment of its holdings in the national carriers Air-India and Indian Airlines.''

Speaking to the media in Bombay, Kumar said the Kelkar Committee report submitted last year had recommended disinvestment up to 51 per cent in Indian Airlines which would reduce the government holdings to 49 per cent. The committee would be presenting its report on Air-India shortly.

He said the government would examine the issue with an open mind and take a decision without delay.

The issue of allowing Air-India to go public figured in the review meeting the minister held earlier in the day with the national carrier's top executives and heads of various departments, a top official said.

Kumar said the bench mark of the turnaround strategy for Air-India was discussed at the review meeting and "we will be committing ourselves for strengthening and making the national carrier not only commercially viable but the pride of Indian aviation once again".

As part of the strategy, a series of measures were discussed for improving the airline's performance, he said.

The whole emphasis of the turnaround strategy would be to make the airline 'look good' with the onset of the 21st century, he added.

Kumar said the operational losses of Air-India had reduced by Rs 1.67 billion to Rs 2.46 billion during 1997-98 against Rs 4.13 billion in 1996-97. The operational losses were going to come down drastically, he said.

He said both Air-India and Indian Airlines would be accorded full autonomy in preparing and submitting their techno-economic proposals for renewal and augmentation of fleets and the government would take pragmatic views while taking a decision on these proposals.

The minister also informed that a deal would be finalised soon for the acquisition of 50-seater aircraft for Indian Airlines.

The minister described the discussion at the Air-India review meeting as 'very open, frank and useful'. Among others who attended the meeting are Civil Aviation Secretary M K Kaw, Joint Secretary Anil Baijal, Air-India Chairman P C Sen, Managing Director M P Mascarenhas and heads of departments of all establishments of the airline.

UNI