The government should look to divest 100 per cent stake in Air India as it would make the offer more attractive for bidders, aviation consultancy CAPA said today. It also suggested that the government should permit strategic partners to integrate the carrier with its existing airline operations.
Rather than being dissuaded for its failure to get a bidder, the government should pursue divestment with "even greater determination" because the "alternative could be far worse", the Sydney-based Centre for Asia Pacific Aviation (CAPA) said.
The ailing national carrier could stand to lose USD 1.5 billion to 2 billion over the next two fiscals and its debt-burden could continue to increase further, it added.
Air India's domestic market share could also slip below 10 per cent as competition will rise from rivals with the addition of 120-125 aircraft in 2019 fiscal in the domestic sector, the aviation think tank said.
The airline could also lose its mantle as the largest international operator as operators like IndiGo, Vistara and SpiceJet plan to induct wide body aircraft and start international operations, it said.
05/06/18 PTI/moneycontrol.com
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Rather than being dissuaded for its failure to get a bidder, the government should pursue divestment with "even greater determination" because the "alternative could be far worse", the Sydney-based Centre for Asia Pacific Aviation (CAPA) said.
The ailing national carrier could stand to lose USD 1.5 billion to 2 billion over the next two fiscals and its debt-burden could continue to increase further, it added.
Air India's domestic market share could also slip below 10 per cent as competition will rise from rivals with the addition of 120-125 aircraft in 2019 fiscal in the domestic sector, the aviation think tank said.
The airline could also lose its mantle as the largest international operator as operators like IndiGo, Vistara and SpiceJet plan to induct wide body aircraft and start international operations, it said.
05/06/18 PTI/moneycontrol.com
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