Air India cleared for privatisation by Delhi

[DrPuff]

India's cabinet has approved plans to privatise Air India.

The debt-laden airline has been struggling to become profitable amid growing competition from low-cost rivals.

Finance minister Arun Jaitley said the government had given an "in-principle" approval for the stake sale.

India will form a committee to decide on the details, including the size of the government's stake to be sold, he said.

The committee will also decide whether India will write off some or all of Air India's 520bn rupee (£6bn, $8bn) debt pile.

Prime Minister Narendra Modi's government has been looking into ways to privatise Air India, which was given a $5.8bn bailout in 2012 and relies on taxpayer funds to stay afloat.

Privatisation plans have been abandoned before, however, and unions have threatened wide-ranging protests if ministers push ahead this time.

Once the country's only airline, Air India has lost market share to new entrants and suffered from a reputation for poor service and cancelled flights.

It remains India's biggest international carrier, flying to 41 destinations, and has just under a fifth of the market.

Air India has 14.6% of the domestic air travel market.

http://www.bbc.com/news/business-40435922

 

[kris]

Better late than never

 

[Bashido]

Excellent move. Govt cannot run any business but can use that entity for political influence in our part of world. I hope one day, we shall also be able to privatize PIA. A big fat dead elephant.

 

[thesolar65]

First TATA, now enter INDIGO for the bidding. Heard some foreign entities are also interested, but whether Govt. allows them or not?

 

[soundHound]

Welcome move, they should return it back to rightful owners TATA, they are the only people who can restore it back to its original Maharaja glory.

 

[punit]

First TATA, now enter INDIGO for the bidding. Heard some foreign entities are also interested, but whether Govt. allows them or not?

indigo should get it ! they are the best Airlines in terms of fare/punctuality and professionalism.

 

[KN-1]

PIA should be privatized too.

 

[wiseone2]

Let us do something about it

 

[Jugger]

Privatization is the best thing that happened to india economically, at last the GOI realized that it cannot operate a loss making organization indefinitely.
I think the TATAs should get it, way better than any other private player in india.