Friday, June 15, 2018

Can Air India survive its botched privatization?

The Indian government's attempt to sell 76% of Air India has so far failed to drum up any interest.

It now faces a stark choice: Continue to pump in billions of dollars of taxpayer money to keep the loss-making airline flying, or allow it to be taken over entirely and possibly broken up.

"In the current framework, the airline cannot survive without government-injected funds," Vaidyanathan Krishnamurthy, a professor of finance at the Indian School of Business, told CNNMoney. "It will continue to bleed cash."

Air India is expected to lose around $2 billion over the next two years, according to the Centre for Asia Pacific Aviation (CAPA). The airline has been kept alive in recent years by a $4.5 billion government bailout in 2012.
15/06/18 CNN