Civil Aviation Minister Ajit Singh managed to create a storm in a tea cup when he said that the government was ready to privatise the country’s ‘white elephant’ Air India.
As soon as the ‘privatise’ word was uttered, the Left parties took out their red flags. CPI leader D Raja asked the government not to take a “disastrous move” which will go against national interest. Raja is right in using these strong words, but for the wrong reasons.
Let’s consider the facts; Air India is losing Rs 11 crore a day down from Rs 50 crore a day in the previous year. This was despite a two-month strike by its costliest employees – its pilots.
For the first time in seven years the company has turned profitable at the operating level.
It’s a clear case of a turnaround, which has been possible only because of a restructuring package and Kingfisher's demise.
Air India was given a much needed restructuring package by way of an equity infusion and debt restructuring. A crash landing by Kingfisher also helped improve tariff.
08/10/13 Shishir Asthana/Business Standard
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As soon as the ‘privatise’ word was uttered, the Left parties took out their red flags. CPI leader D Raja asked the government not to take a “disastrous move” which will go against national interest. Raja is right in using these strong words, but for the wrong reasons.
Let’s consider the facts; Air India is losing Rs 11 crore a day down from Rs 50 crore a day in the previous year. This was despite a two-month strike by its costliest employees – its pilots.
For the first time in seven years the company has turned profitable at the operating level.
It’s a clear case of a turnaround, which has been possible only because of a restructuring package and Kingfisher's demise.
Air India was given a much needed restructuring package by way of an equity infusion and debt restructuring. A crash landing by Kingfisher also helped improve tariff.
08/10/13 Shishir Asthana/Business Standard
