Air India on Sale: What Led to the Downfall of This Airline?
The government is now ready to give discounts and accept terms and conditions in order to sell off Air India.
The government is now ready to give discounts and accept terms and conditions in order to sell off Air India. To the government now, the loss-making Air India is better off sold. But despite the government bowing, the path is not so easy. Also, there are some questions that the government should answer.
When a private airline sinks, the corruption angle is investigated, but if a government company sinks, why should not the responsibility be fixed?
As long as the government does not privatise it, it will remain a noose around the neck and the problems of the state exchequer and the problems of the economy will not be removed. Because, Air India and many PSUs are running in huge losses.
For years, there has been a debate on whether Air India or the loss-making PSU should be sold. Now in the case of Air India, the government has decided to sell it.
New Attractive Offer to Sell
- To sell to Air India, the government had earlier proposed to give 74% stake, which has now been reduced to 100%
- The government had made a net worth of five thousand crore rupees to buy Air India which has now been given a net worth of three and a half thousand crores.
- Earlier, the government had placed a condition that the buyers will also pay Air India's debt of 33 thousand crores but now this amount is only 23 thousand crores.
- The buyer will get the remaining assets of Air India, in which 80-82 airplanes of Air India will also be available.
Who can be the probable buyers? Will the government agree to sell the company in parts? What steps will the government take to improve other PSUs? The Quint’s Editorial Director Sanjay Pugalia analyses the whole issue to answer all such questions.
(The Quint is available on Telegram. For handpicked stories every day, subscribe to us on Telegram)
Subscribe To Our Daily Newsletter And Get News Delivered Straight To Your Inbox.