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Divestment of IA, A-I likely to result in Rs 2.50 billion loss during 2001-02

Union Civil Aviation Minister Sharad Yadav said on Monday that despite his personal objection to divesting Indian Airlines and Air India, the government decided to go ahead with it which he will have to abide by.

Divestment of the two national air carriers was likely to result in an estimated loss of Rs 2.50 billion during 2001-2002, Yadav told reporters.

"Despite my personal objection to the Centre's bid, it has already been decided to go ahead with divestment and I will have to stand by the government's decision," Yadav said.

He, however, declined to specify any time-frame for completing the divestment process saying that these questions should be put to Divesment Minister Arun Shourie.

Yadav said keeping in view the Kandhar hijack, the crash in Patna that claimed over 59 lives and other constraints, Indian Airlines was likely to incur an estimated loss of Rs 2.50 billion during 2001-2002. Indian Airlines had incurred an accumulated loss of Rs 1.75 billion during 2000-2001.

He said Indian Airlines' traffic came down from 22000 per week to 16000 per week after Kandhar and crash in Patna. The situation was gradullay changing and the traffic presently had increased to 23000 per week.

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