Letters: Privatisation only option

With reference to A K Bhattacharya’s article, “Getting rid of an albatross” (May 10), it’s a matter of concern that despite Air India (AI) strategically finalising various plans to cut costs, introduce new routes, improve operational efficiency and marketing efforts and launch a dynamic fare fixing policy, it does not seem to have made much headway, if its financial performance is any indication.

The author has provided enough statistical data, which implies that all is still not well at the airline even after the total equity infusion of Rs 28,500 crore into the state-owned airline in the last nine years. Equally worrisome is the fact that its market share today has dropped to 14 per cent from about 17 per cent in 2009-10.

The buck does not stop here. AI’s losses have been rising constantly along with its debt, which could soon turn into a Pandora’s box for the government.
 
AI has failed to take full advantage of favourable global crude oil prices. Even in 2015-16, its losses were pegged at Rs 3,837 crore. The only consolation was that it made an operating profit of Rs 105 crore during the same period. Some sort of rat race appears to be going on between AI and public sector banks as the government has frequently been providing “oxygen” to banks in the form of huge doses of capital infusion to make them self-sufficient. But their skyrocketing non-performing assets, continued losses and the ever-growing debt of AI bring to light the actual picture.

I agree with the author that privatisation of Air India is the only workable solution. Vinayak G   Bengaluru

Letters can be mailed, faxed or e-mailed to: 

The Editor, Business Standard

Nehru House, 4 Bahadur Shah Zafar Marg 

New Delhi 110 002 

Fax: (011) 23720201  ·  E-mail: letters@bsmail.in

All letters must have a postal address and telephone number