Air India, by itself, was never on the verge of collapse. The present situation has risen due to the inept decision of merging Air India and Indian Airlines by the political masters of the United Progressive Alliance, unopposed by the National Democratic Alliance (NDA) in 2007.
To get out of the situation of getting Air India out of trouble, NDA’s political masters have decided to privatise the national carrier. Is this an apt decision?
The Narendra Modi government has been using the services of Air India for rejuvenating India’s global reach, image and appeal but has failed to turn it around into a profit-making public sector undertaking. Is this not a major failure of the NDA government? Has the route of privatisation been taken by the NDA government to sweep its lack of success under the red carpet of the Maharaja? Changing the minister of state for civil aviation has not come in handy.
Vital issues need to be addressed:
* Who is responsible for the debt trap of Air India — the ruling political class, bureaucrats, self-serving executives and professionals of Air India or the depressed morale post merger and lack of competitive spirit among employees?
* Isn’t Air India still economically viable?
* Is privatisation the only remedy?
* Why did the NDA oppose the privatisation proposal in 2013 but is now pressing for it?
* Why did the NDA not oppose the merger of Air India and Indian Airlines and the purchase of new aircraft?
* Who is accountable for the gross mismanagement of Air India?
* Why has the NDA’s revised turnaround plan not brought about the desired results?
It is a weak move to put the state-owned carrier in private hand(s). A more viable decision would be to separate its international and domestic operations and put them under independent managing directors reporting to an executive chairman of the airline. Professionalism, merit, efficiency and integrity should be the criteria for selecting key executives. Each of the independent international and domestic wings should be given a free hand. The government should infuse equity capital one last time to reduce debt and give Air India another opportunity to regain its glory.
Dalip L M via email
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