Finance Minister Arun Jaitley has hinted at a possible disinvestment in Air India
Words: Vandana Devi Images: Various Sources
The idea of privatising the national carrier which has a debt of around Rs. 50,000 crore isn’t a new one. Jaitley during his tenure as Minister of State for Disinvestment in 1999, had argued for disinvestment saying that otherwise it would reach a point where there would nothing left to disinvest.
It seems like that situation is fast approaching and Jaitley decided to speak up again. “If 86% of flying can be handled by private sector, it can also handle 100%,” he said adding that the public money invested in the loss-making company could have otherwise been spent on school education. Air India’s market share in the domestic market is 14% and internationally is 17%, far behind private players in the market. Also to be considered is the fact that it is has not turned a profit since 2007.
India wouldn’t be the first country to disinvest in a state owned airlines. British Airways, Germany’s Lufthansa and Japan Airline are some examples of the same. However it remains to be seen if the government will go ahead with these plans or if Air India will resume its loss making operations.