Mumbai: Should Air India be partly privatised to increase its profits and solve operational issues? The latest report commissioned by the Corporate Affairs Ministry suggests so.
It is no path breaking thought, but pundits differ radically. Jitendra Bhargava, former AI director, is one of them.
“The need of the hour is to make AI professionalised than privatise. In its current state, with the current management and with the political leader this airline has no future. Then too privatisation is not the only solution. Because even private airlines are not doing well. Kingfisher is an example," says Bhargava.
The report however, states that bringing in private players and capital to operate India's national carrier will help address some of the airline's operational issues, while freeing government funds for other purposes.
"Partially privatising Air India would create incentives for the carrier to compete with other airlines, since Air India‘s private investors would seek to maximize return on their investment," states the study report on Competitive Framework of Civil Aviation Sector in India, commissioned by Indian Institute of Corporate Affairs, and conducted by Nathan Economic Consulting India.
01/10/12 Shivani Shinde/Business Standard
To Read the News in full at Source, Click the Headline
It is no path breaking thought, but pundits differ radically. Jitendra Bhargava, former AI director, is one of them.
“The need of the hour is to make AI professionalised than privatise. In its current state, with the current management and with the political leader this airline has no future. Then too privatisation is not the only solution. Because even private airlines are not doing well. Kingfisher is an example," says Bhargava.
The report however, states that bringing in private players and capital to operate India's national carrier will help address some of the airline's operational issues, while freeing government funds for other purposes.
"Partially privatising Air India would create incentives for the carrier to compete with other airlines, since Air India‘s private investors would seek to maximize return on their investment," states the study report on Competitive Framework of Civil Aviation Sector in India, commissioned by Indian Institute of Corporate Affairs, and conducted by Nathan Economic Consulting India.
01/10/12 Shivani Shinde/Business Standard
