As disinvestment of Air India seems set to become a reality, political leaders are voicing concerns. West Bengal Chief Minister Mamata Banerjee is worried about the country selling off its “jewels”, while BJP leader, Subramanian Swamy is watching closely to ensure a scam does not take place. Some fears are not misplaced as the government is in the process of selling an entity that has enormous value in terms of physical assets as well as human resources.
The sad reality is that as a government company it has not been able to operate profitably and saddled the exchequer with a huge debt burden. The failure of airlines to operate profitably as so-called national carriers is a global phenomenon and not confined just to this country. British Airways, Lufthansa, Alitalia and many others have been privatised over the years for much the same reasons. Public sector airlines have not been much of a success. In the case of Air India, the problem was compounded by the disastrous decision to merge it with the erstwhile Indian Airlines, creating an unwieldy giant.
The disinvestment process is taking place at a time when there has been a quantum leap in the amount of passengers travelling by air.
The sad reality is that as a government company it has not been able to operate profitably and saddled the exchequer with a huge debt burden. The failure of airlines to operate profitably as so-called national carriers is a global phenomenon and not confined just to this country. British Airways, Lufthansa, Alitalia and many others have been privatised over the years for much the same reasons. Public sector airlines have not been much of a success. In the case of Air India, the problem was compounded by the disastrous decision to merge it with the erstwhile Indian Airlines, creating an unwieldy giant.
The disinvestment process is taking place at a time when there has been a quantum leap in the amount of passengers travelling by air.







