Desperate measures

Autonomy for Air India board is no longer a solution

Having come up empty in its disinvestment plans earlier this year, the government’s offer of quasi-Maharatna status to Air India and one-time sovereign guarantee of Rs 150 billion resembles the last throw of the dice in the gamble to enhance the national carrier’s saleability. The illogic of this position is hard to ignore. The Maharatna label implies board autonomy for profitable public sector undertakings. Air India, with accumulated losses of Rs 7 billion on revenues of Rs 22 billion and a debt burden of Rs 465.7 billion, does not qualify for this status on any key parameter. The plan to