There are a number of media reports that say the Tata group may regain control of a sick Air India. Privatisation and nationalisation are needed in India which follows the economic system of a mixed economy. One feels that the Indian state need not run commercial enterprises for the simple reason that it tends to compromise profit for achieving overall welfare of the people. However, one is quite sanguine that Air India, under the leadership of the Tatas, would soon attain the break-even point and start reaping profits in a couple of years from now (‘Business’ page – “Centre to rejig Air India’s debt”, June 23).
S. Ramakrishnasayee,
Ranipet, Tamil Nadu
One is bemused if somewhat dismayed at the veritable “glee” with which most of the media have greeted the news of Air India’s proposed privatisation. One well-known news magazine has even featured a premature epitaph of the national airline with the cover story entitled “The End”. Nearly all the talking-head policymakers and economists of the country are cheering the government on to expedite the matter. They even suggest that the government should swallow the bitter pill of retaining the AI’s massive debt load while selling off its rain-making assets to make the deal attractive to a potential foreign investor.
All this should seem, in the eyes of an informed and sensible citizen, far too illogical and opportunistic. First, amid the din to egg the government on to sell the airline, the voices of its harried workforce have been largely muted. Air India is gaining an increasing number of new passengers on account of extremely convenient flights to the U.S. and Europe and on account of the problems afflicting Western and Gulf-based carriers. Second, if the experts are asking the government to structure the “deal” so that the investor gets the plum portions and the government holds the debt, why not indeed offer the same package to the airline itself? If that is done, Air India will be back in the black in no time. Lastly, the experts — for whom privatisation is the panacea that solves all public ills — ought to look at the poor services and mismanagement that British Rail has gained a reputation for after being privatised or how British Airways and Lufthansa are not exactly covering themselves with glory even after a brief spell of post-privatisation growth.
I. Sinha,
Philadelphia, U.S.
