Government says goodbye to Air India

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In a long-expected move, Air India is to be disinvested by the Indian government, according to a cabinet decision taken today, June 28, at a meeting presided over by Prime Minister Narendra Modi.

Whether it will be a sale or partial disinvestment is still not clear. This will be decided by a high-level committee, which will also oversee who the bidders might be.

The decision comes after years of mounting losses and debt of Rs52,000 crores by the Maharaja lline.

Crores of rupees have been infused into Air India, but it was felt by many that just spending money was a waste, especially since money needs to be spent on more important items, such as education and the agricultural and social sectors.

There will surely be many who will be unhappy at the shape of a new Air India, as the line has been associated with bringing a glorious name to India through its services, unique product, and image.

From a pure economic angle, the market share of Air India has come down to about 12 percent, while private carriers, both full service and low-cost carriers, have seen a rise.

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Avatar of Anil Mathur - eTN India

Anil Mathur - eTN India

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