The Tata Airlines was started in 1932 but post-independence, the government bought it over in 1954 and renamed it Air India (AI). By 1962, it became world’s first all-jet airline and was considered a jewel in the crown by independent India.
The AI had a paid up capital of Rs 154 crore which continued till 2004. Further, till then, the national carrier had never received any budgetary support from the government and it was able to purchase its aircraft and built its numerous properties out of its own funds.
After the NDA government took over in 1998, it was decided to privatise state-run airline through strategic sale to an Indian entity which could also have a foreign airline as a joint venture partner.
The process of divestment of AI was nearly completed in 2001 but fell through at the last minute as the joint venture partner pulled out and 9/11 incident in New York took place. The UPA government took over in 2004 and reversed the previous policy decision and decided not to divest the airline which was like a holy cow to them.
02/10/14 Sanat Kaul/Deccan Herald
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The AI had a paid up capital of Rs 154 crore which continued till 2004. Further, till then, the national carrier had never received any budgetary support from the government and it was able to purchase its aircraft and built its numerous properties out of its own funds.
After the NDA government took over in 1998, it was decided to privatise state-run airline through strategic sale to an Indian entity which could also have a foreign airline as a joint venture partner.
The process of divestment of AI was nearly completed in 2001 but fell through at the last minute as the joint venture partner pulled out and 9/11 incident in New York took place. The UPA government took over in 2004 and reversed the previous policy decision and decided not to divest the airline which was like a holy cow to them.
02/10/14 Sanat Kaul/Deccan Herald
