Proposals to sell Air India have been heard for over three decades now but this time the Govt is serious

When it comes to Air India and the issue of privatisation, opinions are strongly divided. Some feel that the government has no business being in the airline business and Air India’s continued dependence on taxpayer money for its very survival is evidence that it should be sold off to the highest bidder who can turn it around. Others say that the main reason for Air India continuing to depend on the taxpayer is because of poor management decisions in the past and if it could get rid of the massive loans it has to service, it would actually be marginally profitable. Several divisions of the airline already are fairly profitable. One rationale for the latter reasoning is that any potential buyer of Air India would want the government or public sector banks to take a slight haircut on the loans any which way. So if the government was to do so, it would serve the same purpose. The latter would make for a compelling argument if only there was a guarantee that any future government would not saddle the airline with massive loans while potentially taking huge kickbacks. That has been the case with aircraft purchases, lease agreements, contracts for all sorts of products and even staffing. And it is for that very reason that Air India has to be saved from its worst enemy, the Government.

This is converse to the standard argument that many people make but it is the truth. Government intervention has impacted Air India for the worse ever since it was forcibly nationalised in the 1970s. As for national obligations in transporting passengers to remote destinations, clauses still exist for every airline as does the fact that each and every commercial aircraft that flies the flag of India with an Indian registration can be requisitioned at the time of a national emergency. Privatising Air India might finally allow it to flourish in the manner it always should have and give Indians an airline they can be proud of. Air India has taken several strides towards improving itself over the past decade but it can take many more and to do that, it needs fresh ideas, capital and need to be released from its indentured servitude to the Government. Privatising Air India should not be seen as benefitting the taxpayer, it will be benefitting Air India. If its Udaan scheme has proved anything, then it can develop sustainability as a strong regional carrier, too, with a multiplier effect and stick to profitable international routes.