Letter to BS: Sale of Air India is unavoidable, but who will buy it?

After an unsuccessful attempt to sell its stake in Air India, the government is going to make another attempt. The airline, which is in debt, has been suffering for a long time now. Therefore, the government is adopting the path of disinvestment or privatisation. Those who were brought back to Air India in February 2019 to smoothly execute the process remained unsuccessful. Now whether this second attempt will be successful or not, remains a question. Despite the deterioration of Air India, some companies are showing interest because Air India has extensive domestic and international network, traffic rights in important airports such as London and Dubai. But there is a catch. Air India has a debt of thousands of crores of rupees. This includes long-term debt for the purchase of aircraft. The national carrier is currently incurring a daily loss of around Rs 20-25 crore and has a debt of Rs 5,000 crore.

         

Bhupender Ranga, Panipat

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