Reportedly air india chief Ashwani Lohani said that "rumours" of the disinvestment-bound airline's shutdown are "all baseless", weeks after he told the Civil Aviation Ministry that the carrier's financial situation was "grossly untenable" for sustaining operations. The air india Chairman and Managing director tweeted "Rumours regarding air india shutting down or closing operations are all baseless. air india would continue to fly and also expand and there should be no cause for concern whatsoever to travellers, corporates or agents. air india the national carrier is still the biggest airline of India".
Previously in a letter to the ministry last month, he had said, "It also needs appreciation that the overall financial situation is grossly untenable and the airline may not be able to sustain physical operations in the absence of immediate government intervention and support that we have been repeatedly requesting for in the recent past."
Perhaps the Centre plans to divest its entire stake in air india this time so as to make it attractive for private entities and at a meeting with some 13 air india unions in delhi on thursday, puri had said that the government was trying to address the concerns of the employees regarding issues such as job protection post privatisation.