TravTalk India Online Magazine
Now that the government has decided to open the gates of Air India for disinvestment, experts and industry players are speculating what lies ahead for the national carrier. While many feel that the move is right, others believe that Ashwani Lohani, Chairman & MD, Air India, should have been given more time to turn it around.
Nisha Verma & Nikhil Anand
K Narayan Rao, Director, Delhi International Airport
The government is planning its strategy for Air India disinvestment with NITI Aayog. Personally, I agree when the Prime Minister says that the government has no business to be in business. We are already seeing the difference between Air India and other airlines. Thus, it is time that they should find a solution and look for a new player to handle Air India more efficiently. They are considering a couple of options as there is a huge debt of more than `50,000 crores, which is not viable for any single player to take over. Ideally, a part of the debt should be taken up by the government and then the remaining part should be given to the private sector.
Subhash Goyal, India Travel Award winner and Chairman Stic Travel Group
Every country needs a national carrier and it is also true that national carriers can be privatised. Air India has done a great service during the time of crisis and its Maharaja is a great brand. Although, in the past few years, the product and brand has seen a downfall. However, with the new CMD Ashwani Lohani came a new enthusiasm in Air India and I am confident that it will be turned around. With new destinations that Air India has added to its network, like Madrid, Vienna and upcoming destinations like Copenhagen and Washington, I am sure that the national carrier is going to be profitable. The debts from the old legacy should be taken care of by the government, especially when the airline is showing operational profit. Private equity should be infused. Instead of being answerable to politicians, the airline should be answerable to shareholders.
Sanat Kaul Chairman, International Foundation for Aviation and Development
Disinvestment of Air India was on cards in 2001, when Singapore Airlines backed out of the JV with Tata, which was followed by 9/11 and no airline was interested. Had it been divested to a strategic partner back then, Air India would have been a firstclass airline today. Disinvestment is a positive move, because in its present state, Air India is bleeding with debt. It’s doing well operationally. The present CMD has done a good job, but the environment is not conducive as it has to compete both on domestic and international sectors.
Deepak Bhatnagar, MD, Aamantaran Travels
Over the years, Air India has been doing a good job. The new CMD has taken very bold decisions. Going back to the European source markets is a good move for the airline. I don’t think it’s a good time to talk about disinvestment and disturb the airline’s momentum. I think the government should give them 2-3 years to see how it goes. If it works, then they can consider a joint venture of 49-51, instead of going 100 per cent out of the government fold. The government should keep the majority stake and CMD Ashwani Lohani should be given more time and get a fair chance to deliver.
Anil Khaitan Senior Vice President, PHD Chambers of Commerce
Privatisation of Air India is a very complicated issue especially with `52,000 crore debt, it is very difficult for any private sector unit to handle this PSU. The government should take a decision in the interest of the future operation of Air India if it goes to a private player to make it successful and bring it back to its old glory. By privatisation, there would be tremendous growth in passenger traffic, provided proper infrastructure is there. Second, there will be tremendous growth in tourism, and it would have a serious impact on India and its economy, as the civil aviation sector is booming.
