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Sunday, 28 September 2014

Privatise Air India: It’s now or never

Headlines in the last few weeks have not been very charitable to Air India. “AI loses commerce minister’s baggage on way to Sydney”, “AI officials danced as flight waited for three hours to take off”, “Worm found in sandwich served on AI flight”, “PMO turns down aviation ministry’s request for a 2-year extension for AI Chairman & Managing Director (CMD) Rohit Nandan”, and finally, “Government mulls closing loss-making state entities”. Surely, not a great month for the normally unflappable

Rohit Nandan, probably one of the best CMDs that Air India has had. It was under his leadership that Air India received the much-delayed membership of the Star Alliance, two months back.
Set up in 1932 as the Aviation Department of Tata Sons, the airline was christened Tata Airlines in 1938 and Air India in 1946, before being acquired by the government of India in 1953. Today, after over six decades of government control, it has been reduced to a financial disaster. With a debt of over R40,000 crore and accumulated losses of over R36,000 crore, its revival under government ownership appears well-nigh impossible.
Read news in full 23/09/14 Financial Express
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