It is good the Centre has realised that the aviation industry is not a pot of gold; neither is there an international scramble to acquire airlines. Jet remaining unsold has also been a learning experience. That is why the third attempt to sell off Air India, after two failed bids in 2018, stands a better chance of success. This time the government is offering prospective bidders the entire 100% in both Air India and Air India Express as well its 50% stake in the ground-handling firm AISATS. Last time round, the insistence of the government of holding on to 24% stake scared off bidders.
In this round, the government has also taken care to withhold the bulk of Air India’s debt overhang, while the buyer will assume charge of a much depreciated Rs 23,286 crore of debt. On the other hand, for the buyer, Air India is a huge brand carrying the national flag, and one that has grown brick by brick since it was founded in 1946 by J R D Tata. Over the years it has acquired a vast network of 52 Indian and 42 international destinations, the largest among Indian airlines.
It has a relatively young fleet of 146 aircraft. It may not be the largest passenger carrier today, but its airport and hangar slots are the most extensive, a huge infrastructure that any player would find difficult to build on its own. In the current scenario where the government has neither the resources nor the will to save the airline, prudence rather than emotion should reign. It is best for all stakeholders that the airline should be put on track in time before it goes the way of Jet Airlines.
31/01/20 New Indian Express
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In this round, the government has also taken care to withhold the bulk of Air India’s debt overhang, while the buyer will assume charge of a much depreciated Rs 23,286 crore of debt. On the other hand, for the buyer, Air India is a huge brand carrying the national flag, and one that has grown brick by brick since it was founded in 1946 by J R D Tata. Over the years it has acquired a vast network of 52 Indian and 42 international destinations, the largest among Indian airlines.
It has a relatively young fleet of 146 aircraft. It may not be the largest passenger carrier today, but its airport and hangar slots are the most extensive, a huge infrastructure that any player would find difficult to build on its own. In the current scenario where the government has neither the resources nor the will to save the airline, prudence rather than emotion should reign. It is best for all stakeholders that the airline should be put on track in time before it goes the way of Jet Airlines.
31/01/20 New Indian Express
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