NEW DELHI: The Cabinet Committee on Disinvestment (CCD) approved the civil aviation ministry's proposal to put off privatisation of the two airlines, Disinvestment Minister Arun Shourie told a press conference after a cabinet meeting here. National flag carrier Air-India and Indian Airlines, the country's largest domestic airline, had been on the government's privatisation list for about three years. The move to privatise the two airlines ran into rough weather after bidders for Indian Airlines were disqualified and the sole bidder for Air-India withdrew saying the deal was not viable. The decision to put the two carriers off the privatisation list is expected to expedite their fleet expansion and modernisation plans. Indian Airlines and Air-India are on the verge of major fleet expansion programmes that envisage the induction of 60 new aircraft between the two. Civil Aviation Minister Shahnawaz Hussain had earlier said his department had drawn up an ambitious 300 billion fleet expansion plan for both carriers over the next five years. The civil aviation ministry was awaiting a formal decision by the government on shelving the privatisation plan before putting the fleet expansion and modernisation plans into high gear. Of the total 300 billion, Indian Airlines is expected to spend 160 billion to purchase 43 aircraft and Air-India another 140 billion for 17 wide-bodied aircraft. Air-India's purchase order for commercial jets has triggered stiff competition between rival aircraft-makers Airbus and Boeing. The Air-India board last Saturday put off a decision on buying aircraft for an indefinite period.
Source: IANS