June 12, 2017

UPA and Air India:                

     The country's national  carrier AI(Air India) has been in the ventilator for many years.The airline has been surviving on 30,000 crore allotted by the then UPA government in the year 2012.This has happened only because of one reason that is the then UPA had passed the proposal of ordering 100 wide body and narrow body fleet from Boeing which includes AI'S flagship the B787 Dreamliner. The second reason was the merger of Air India with that of INDIAN in the year 2011.This resulted in the airline incurring a huge loss that year .

Air India Privatisation:  

                     Recently the carrier posted a net profit of  105 crore in the year 2016.But the CAG declined that the national carrier  had  not made any profit in that financial year. There is news going on that the airline is going to be privatised as per the recommendation of the Indian Development Body NITI Aayog. With this decision I Feel that the government is doing the right thing .

What If it is Privatised?

                       If the airline goes into the hands of private players it will become commercially competitive like its rivals Jet airways,Vistara and Indigo.Though under the the leadership of Ashwani Lohani, the current Chairman of Air India the carrier has progressed well with its sell and lease program of the B787. The fact is that Air India cannot be run by bureaucrats because in the long run they lack the experience of running an airline and off late as it is in the hands of the government the employees have become lethargic in ensuring proper duty reducing the on-time performance record of the airline.Hence, privatisation will make the employees more efficient thereby getting into consideration the target oriented process.

Experts View:

Some experts say that the airline's privatisation plan  may not take off as it suffers from a financial disability of 52,000 crore.To counter this effect I would like to mention the fact that there are certain airlines which have turned around very well in spite of their financial difficulties , For example spice-jet had an financial difficulty in the year 2014 and the airline was about to close down its operations but the then chairman Kalanithi Maran a man with no experience of running an airline handed over the airline to its original founder Ajay Singh within a short span of time the Carrier reflected better results the very next financial year. Recently it was awarded the best on time performance award for the year 2016.

Aadhimarg's View:

So I feel that the carrier can be saved only if it is given to private entrepreneurs who know the pros and cons of running an airline and not to others who in real lack professional experience for running an airline.We at Aadhimarg after  thorough  analysis would like to conclude that in order to make Air India globally competitive it needs to be privatised.


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