Air India employees will be given stock options: Jayant Sinha

Air India divestment

is one of the biggest reform moves by the Modi administration and the government is pulling out all stops to gear up for political opposition as the process rolls off along with allaying employee fears. Hours after the first bid document for AI-AI Express-AI-SATS divestment was made public, Union minister of state for civil aviation

Jayant Sinha

told TOI that NDA is trying to reverse the damage inflicted by UPA on AI and make it a great global airline. Excerpts:

How do you view Air India sell off as?

The UPA had reduced our Maharaja to a beggar. We are making him a magnificient Maharaja once again. The government is sending a very clear signal with its intent to exit this business that it has to focus on social sector schemes and not running an airline. This bold decision defines the role that the Modi government wants to play.

Read full story here: Govt offers to sell 76% stake in AI to private bidders

How will you allay employee fears of losing jobs in the private Air India?

We envision a very bright future for the employees as AI will be a great global airline. Employees have arrears of Rs 1,298 crore and the government has decided that this amount will be paid by it and not be transferred to the airline. We are going to carve out Esops from the 24% stake that the government retains. That way employees will also own the new AI. There will be other important safeguards for protecting employee interests which will be spelt out in the request for proposal.

What steps has the government taken to ensure Air India retains its identity?

AI

will have to be managed on an arms’ length basis and cannot be merged with any other entity. Its identity as a separate airline has to be maintained for at least three years. The brand name Air India will have to be retained. The period for which this will have to be done will be spelt out in the RFP. We have ensured AI has an independent existence for at least three years and that it remains a domestic airline with the substantial ownership and control with Indians.

What will happen to the vast art collection Air India has built over the decades?

We are creating AI Asset Holding company, which will have non-core real estate and art collection of AI, among other things. The art and artefacts will be handed over to the ministry of culture which will, in turn, give them to museums.

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