Air India Privatization Back on Government’s Agenda
Neelam Mathews June 8 2017 AIN Having gained a majority in parliament, the government of Indian Prime Minister Narendra Modi has begun seriously considering the restructuring and/or privatization of national carrier Air India. A high GDP growth rate and a domestic aviation market set to overtake Japan this year as the world’s third largest has led to calls for a more effectual national carrier. Air India’s debts now amount to $7.5 billion, about half of which stems from aircraft loans. The Ministry of Civil Aviation, prodded by a proposal made by the government’s newly formed innovation think tank Niti Aayog, has started the process of preparing a note for the cabinet that will decide on the future course of action, confirmed junior minister of civil aviation Jayant Sinha at a press briefing on June 5. He and an Air India official both refused to comment on the details or reports that the new entity could launch in 18 months. Asked whether the move could presag...