If the government is serious about its reforms credentials and about saving the taxpayers’ money, it should make Air India a test case. No more money should be given to the airline until it comes up with a viable plan to turn itself around — this involves sharp salary cuts for everyone, and route-rationalisation to cut costs, and other efficiency-related steps like flying more. Until this is done, the government will just lose more money on reviving the airline. It is also not clear why the government does not try to sell the airline. No matter what price it gets for the airline, it is better than having to bail it out.
Sanjay Chadha, New Delhi
