In a letter addressed to the employees, Lohani also wrote that ownership change will usher in a corporate culture where merit would be better rewarded. 

Noting that the government's decision to pull out of Air India was in the airline's best interest, Lohani wrote,"It is the firm conviction of the government that the process of disinvestment is only meant to make Air India a much stronger world class airline capable of competing with others successfully." 

"This decision is primarily an offshoot of the inability of the airline to service the huge accumulated debt of over Rs 50,000 crore," he noted.

Lohani said despite the government's decision to privatise the airline, Air India would explore ways to increase its market share and addition of new destinations to its network would continue "unabated". 

The Union Cabinet late last month gave its in-principle approval for disinvestment of Air India. A group of ministers headed by Finance Minister Arun Jaitley will finalise the modalities.