Air India needs a sell-off plan; make it fast

Air India is barely flying. Ironical as it may sound, it has managed to just afloat on the back of a massive Rs 30,000 crore bailout package from the central government. As reported earlier, Air India has been hit severely by a Rs 46,570 crore debt including aircraft related loans of about Rs 15,900 crore. Earlier, the Economic Survey 2017 had also spoken about the mess AI was in and had given indications to privatise the airline. Now, while it has been opposed in the parliament on earlier occasions, it must be remembered that the bailout packages the government has been providing have gone in vain. In the year 2013, Jet Airliner Crash Data Evaluation Centre (JACDEC) had said that AI was placed third last in a list of 60 airlines which it evaluated. This is a big blow to the national carrier and its global image. So instead of humiliating the industry any further and wasting the tax payer’s money on something that has clearly been futile, the government could sell it to corporates that can make maximum use of the government schemes and policies while taking the airlines on a better path.
Earlier, speaking to CNN, Aviation Minister Ashok Gajapathi Raju had said that the government wanted AI to survive. He had said that they did not mind where it was, who owned it as long as it served the Indian people and skies. Raju had further added that he couldn’t waste the taxpayers’ money to keep it flying for eternity. Whether it was owned by the government or somebody else, the government would like it to survive.
17/02/17 Financial Express

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Categories: Air India Feb 2017