Aviation thinktank CAPA has released a report on Air India stating that the government should exit the national career completely if it wants to have any chances of the revival. A partial disinvestment in the airline will not ensure a completely independent working organisation. If the government retains any equity in the organisation, the interference in the working of Air India will continue and the situation cannot be better than how it is now.
Stating that the foreign companies should be allowed to place bids in the process, the report stated that the most important step for the government before starting the sale process includes cleaning up the balance sheets. The airline currently has a debt of over ₹50,000 crores.
To revive the debt-ridden airline, the government has been discussing all sorts of possibilities since last few months, however, a decision has not been made yet.
The report by CAPA India also suggests that the government should look at selling all the verticals of Air India, including Air India, Air India Express and Air India regional. The complementing combo of Air India and Air India Express (Air India’s low-cost international service) can be a huge point for anyone looking to acquire a stake in the national airline. Also, allowing international companies to buy a stake in Air India could fuel in a lot of interest and increase the number of interested companies.