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What will happen to Air India employees after privatization?

Air India to induct Coruson for end-to-end safety management across operations


Air India is the flag carrier airline of India. It is owned by Air India Limited. A government owned enterprise. Air India shares nearly 18% market share. The airline was founded by J. R. D Tata and Tata Sons as Tata Air Service later renamed as Tata Airlines in 1932. Later it was again renamed as Air India in 1960. In 2007 it merged with Indian Airlines under Air India Limited. Air India become 27th member of Star Alliance in 2014.


On 28 June 2017, Air India announced it is in debt and no sign of recovery, the Government of India approved the privatization of Air India. In 2018 Government announced to sell 76% stake of Air India including Air India Express and 50% stake of ground handling joint venture of Singapore. It was state that the new owner would have to take on debt a debt of US$4.7 billion, but no private firm showed interest in buying a debt-laden airline. In 2019 Government decided to sell 100% share of the airline. In January 2020, the government announced of selling the airline and invite bidders, this time it was decided to sell 100% shares of both Air India and Air India Express and 50% shares of ground handling joint venture of Singapore.


On 27 March 2021, Union civil aviation minister Hardeep Singh Puri stated that the privatization of Air India is likely to be completed by the end of May. The airline still in debt of U$8.26 billion and it is liable to be sold.


“Several employees depend on this benefit to lead a decent retired life. We fear this benefit may be discontinued in case of privatization of Air India and employees will suffer huge financial losses. Therefore, AIEU would like to propose that the employees should be paid leave encashment allowance till March 31, 2021,” the letter said, according to a report by IANS news agency.


The Private venture possibly lay off management staff but retain with Technical staff in Air India and also depends upon the terms and conditions of unions and buyer. But the Union may dissolved after merging or takeover by new venture.


Air India started with a de Havilland Puss Moth. It inducted first Boeing 707-420 and became the first Asian airline to induct a jet aircraft in its fleet. Air India own 26 numbers of wide body, 15 are B777 and 44 numbers of narrow body and 62 various aircraft are leased.


He is an aviation journalist and the founder of Jetline Marvel. Dawal gained a comprehensive understanding of the commercial aviation industry.  He has worked in a range of roles for more than 9 years in the aviation and aerospace industry. He has written more than 1700 articles in the aerospace industry. When he was 19 years old, he received a national award for his general innovations and holds the patent. He completed two postgraduate degrees simultaneously, one in Aerospace and the other in Management. Additionally, he authored nearly six textbooks on aviation and aerospace tailored for students in various educational institutions. jetlinem4(at)