Wednesday, February 22, 2017

Air India is in a debt trap: Ashok Gajapathi Raju

The performance of Air India in recent times has gone up. It is a good airline but its finances are bad. Last year, it didn’t make an operating loss, but a profit that is probably worth not talking about. This year, it will make an operational profit again. But it’s in a kind of debt trap. The government had committed money and around ₹23,000 crore has been released. After that money comes in, what about its finances? It is still in a debt trap. So something has to be done. It’s a nice airline, and I have been saying that right from day one in office. Even in Parliament, I said that I will not do Air India bashing. We can’t commit the taxpayers’ money for eternity. If you leave it like this, there will be a downhill slide and one fine day it willAir India close shop. If some strategies come in, then it can survive and compete.

Is privatisation one of the strategies?

It has a big debt. You put the airline on the market and no one will buy it. What do you do? People who are well-versed with finances will have to start thinking on those lines.
21/02/17 Defence Aviation Post
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