The Decision Trap
It was among the wisest decisions taken, when the Finance Ministry junked Air India's demand for a Rs 30,000-crore fund infusion, reportedly because the airline didn't present a turnaround plan.
- Sep 5, 2018,
- Updated Sep 5, 2018 6:47 PM IST
It was among the wisest decisions taken, when the Finance Ministry junked Air India's demand for a Rs 30,000-crore fund infusion, reportedly because the airline didn't present a turnaround plan.
The Finance Ministry had discussed a Rs 11,000-crore bailout package with the Civil Aviation Ministry earlier when the attempt to sell a 76 per cent equity stake in the Maharaja bombed.
One could well argue that for a government preparing for the general elections next year, there are more urgent issues than reviving Air India. The airline has already sucked in Rs 28,175 crore from the Rs 30,231-crore (10-year) turnaround plan (TAP) approved by the previous government in 2012 with a marginal improvement in its operating profits for two consecutive years but with the deterioration in market fundamentals, Air India will most likely struggle with profitability yet again.
Manu Kaushik
It was among the wisest decisions taken, when the Finance Ministry junked Air India's demand for a Rs 30,000-crore fund infusion, reportedly because the airline didn't present a turnaround plan.
The Finance Ministry had discussed a Rs 11,000-crore bailout package with the Civil Aviation Ministry earlier when the attempt to sell a 76 per cent equity stake in the Maharaja bombed.
One could well argue that for a government preparing for the general elections next year, there are more urgent issues than reviving Air India. The airline has already sucked in Rs 28,175 crore from the Rs 30,231-crore (10-year) turnaround plan (TAP) approved by the previous government in 2012 with a marginal improvement in its operating profits for two consecutive years but with the deterioration in market fundamentals, Air India will most likely struggle with profitability yet again.
Manu Kaushik