Air India's privatisation efforts are welcome, but hurdles remain

A successful take-off for the privatisation effort may require more than just the potential for growth

The central government has floated the expression of interest (EoI) document for Air India, setting off the process of privatisation of the national carrier. This is a welcome move because a long-standing demand on the reforms checklist has, finally, been ticked. The airline has been making massive losses on a regular basis and there was simply no rationale for the government pumping in huge sums of money to maintain the airline’s public sector identity. The government has decided to offload 76 per cent of its stake in Air India, 100 per cent in the fully owned budget arm Air India