The Union Cabinet’s nod for privatisation of debt-ridden Air India and its five subsidiaries is a bold move (“Govt. to shed stake in loss-making AI,” June 29). The once high-flying ‘Maharajah’ was brought down to earth by mounting losses and huge debts, inviting the scorn of all stakeholders.
With the bankers and the investigating agencies turning the heat on Vijay Mallya’s ailing Kingfisher Airlines, it was only obvious that ugly questions began to be raised on Air India leading a charmed existence. It was also apparent that the government was steering a sinking craft and it made sense to haul it out of troubled waters in a hurry. The airline has run up debts of ₹52,000 crore and is surviving on a ₹30,000-crore bailout package offered by the UPA government.
Though the fine print for the airline’s strategic sale is yet to be worked out, it will certainly be a tall order for any buyer to turn around the airline and make it fly high again.
N.J. Ravi Chander,
Bengaluru
