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Thread for discussing the privatisation of Air India. It has started.
http://www.news18.com/news/india/mo...l-for-disinvestment-of-air-india-1446389.html
My opinion:
No Indian company or consortium of companies would want to swallow up Air India's $7 billion debt. Even if you raise $3 billion by selling off its immovable assets, that's still $4 billion that's better spent starting your own airline and buying two dozen fresh widebody airplanes.
At the same time, $7 billion (Rs 42,000 crore) is an intolerable strain on the Indian Exchequer, if the government chooses to waive it off.
What government can do is auction a 49% stake, with both Indian and foreign players being eligible. Under the terms of sale, Air India will have to scrap its current HR policy root and stem, and replace it with a cutthroat employee performance policy similar to IndiGo or Jet Airways. AI staff should stop feeling like invincible sarkaari karamchaaris. With these many planes and assets, any other crew would have made Air India a very successful airline. They failed, and they don't deserve the protection of the Indian taxpayer.
Later down the line, with its debt under $5 billion, and if its growth prospects are looking up, the government should sell another 46% stake to an Indian player, and retain a 5% stake.
http://www.news18.com/news/india/mo...l-for-disinvestment-of-air-india-1446389.html
My opinion:
No Indian company or consortium of companies would want to swallow up Air India's $7 billion debt. Even if you raise $3 billion by selling off its immovable assets, that's still $4 billion that's better spent starting your own airline and buying two dozen fresh widebody airplanes.
At the same time, $7 billion (Rs 42,000 crore) is an intolerable strain on the Indian Exchequer, if the government chooses to waive it off.
What government can do is auction a 49% stake, with both Indian and foreign players being eligible. Under the terms of sale, Air India will have to scrap its current HR policy root and stem, and replace it with a cutthroat employee performance policy similar to IndiGo or Jet Airways. AI staff should stop feeling like invincible sarkaari karamchaaris. With these many planes and assets, any other crew would have made Air India a very successful airline. They failed, and they don't deserve the protection of the Indian taxpayer.
Later down the line, with its debt under $5 billion, and if its growth prospects are looking up, the government should sell another 46% stake to an Indian player, and retain a 5% stake.