Hope disinvestment will deliver a strong, rejuvenated Air India: IATA

NEW DELHI: Global airlines' group IATA on Tuesday expressed hope that the disinvestment process will result in a strong and rejuvenated Air India, which is able to support growth of India's aviation market.
The International Air Transport Association (IATA) has around 290 airlines as members, including Air India.
Making a second attempt in as many years for strategic disinvestment of Air India, the government on Monday issued the preliminary bid document for 100 per cent stake in the debt-laden airline.
"We hope the disinvestment process will deliver a strong and rejuvenated Air India that is able to support the anticipated growth potential of India's aviation market," IATA assistant director (Corporate Communications - Asia Pacific) Albert Tjoeng told PTI in an e-mailed statement.
At the same time, it is important to ensure that the operating and regulatory environment in the country allows Air India and all Indian carriers to operate effectively, he said.
In 2019, domestic air passenger traffic in India stood at 14.41 crore, an increase of nearly four per cent compared to the previous year, as per the latest official data.
As part of the latest disinvestment plan, Air India would also sell its 100 per cent stake in budget carrier Air India Express as well as 50 per cent shareholding in equal joint venture Air India SATS Airport Services (AISATS).
All the three entities would be sold together and management control of the national carrier would be transferred to the new investor.
Air India is in the red for long and the disinvestment is aimed at reviving the fortunes of the full service carrier.