Air India has had an encouraging financial year on several counts. It has cut down losses, revenues have jumped significantly and the beleaguered airline has achieved milestones required for a government bailout.
While the state-owned carrier is still struggling with massive losses and is dependent on government dole-outs, industry observers suggest whether it is time to start thinking about taking Air India public, reports CNBC-TV18's Sumit Jha.
In May 2012, Air India was crippled by a month-long strike BY pilot which seemed like a fatal blow as the strike had occurred after a massive bailout worth Rs 30,000 crore was released. But all that is in the past. Since the pilot’s strike in May 2012, the airline has not faced any employee agitation since and successfully implemented difficult decisions like the discontinuing of performance-linked incentives and integration of erstwhile Indian Airlines’s operations.
These steps have helped it cut costs by nearly 30 percent in the last fiscal. Air india insiders, however, believe that the airline needs further structural changes to sustain the positive momentum. Taking Air India public is a key structural change that experts believe will not only bring much-needed corporate discipline, but will also insulate the company from debilitating political interference.
13/06/13 Sumit Jha/CNBC-TV18/moneycontrol.com
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While the state-owned carrier is still struggling with massive losses and is dependent on government dole-outs, industry observers suggest whether it is time to start thinking about taking Air India public, reports CNBC-TV18's Sumit Jha.
In May 2012, Air India was crippled by a month-long strike BY pilot which seemed like a fatal blow as the strike had occurred after a massive bailout worth Rs 30,000 crore was released. But all that is in the past. Since the pilot’s strike in May 2012, the airline has not faced any employee agitation since and successfully implemented difficult decisions like the discontinuing of performance-linked incentives and integration of erstwhile Indian Airlines’s operations.
These steps have helped it cut costs by nearly 30 percent in the last fiscal. Air india insiders, however, believe that the airline needs further structural changes to sustain the positive momentum. Taking Air India public is a key structural change that experts believe will not only bring much-needed corporate discipline, but will also insulate the company from debilitating political interference.
13/06/13 Sumit Jha/CNBC-TV18/moneycontrol.com
