Forget it; the airline won't be sold

For cash-strapped Air India (AI), figures do not matter: whether it is the 43,000 crore debt that includes a working capital loan of 22,000 crore, accumulated losses of 18,000 crore, or other dues and employees' salaries of around 8,000.
The CAG has found nothing new taking a dig at the very basis of merger, acquisition of aircraft beyond its requirement, giving away bilateral routes without enhancing the indigenous capacity of airlines in India including AI. The merger and fleet acquisition completely destroyed the airline. The government is now mulling a new turnaround proposal.
Reforms unleashed during the NDA regime benefited the aviation sector - be it the low-cost carriers or privatisation of Delhi and Mumbai airports, or greenfield airports in Hyderabad and Bangalore. Strangely, reforms to foster growth left AI untouched. This prompts every taxpayer to ask why they are compelled to sustain AI's burgeoning losses of 20 crore everyday. Someone has to do the answering, raising a frenzied pitch for outright privatisation of AI.
14/09/11 Rajiv Pratap Rudy/Economic Times

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Categories: Air India Sep 2011