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Journalism of Courage
Instead of using taxpayer money to bail out Air India again,read the writing on the wall
After deliberating for almost three years,the cabinet finally cleared a massive Rs 30,000 crore revival package for Air India,which includes an equity infusion of about Rs 6,000 crore besides sovereign guarantees and debt restructuring. But such a bailout,using taxpayer money to just about keep the state-owned carrier afloat,does not pave the way for a successful turnaround. The airline has a host of problems,government mismanagement being the foremost.
As the PSU board prepares itself for the tough decisions,the government must delink itself from Air India. It must let a professional board run the operations. Only if the maharaja is freed from the governments clutches can he be expected to react with any degree of agility to competition from private sector rivals. With taxpayer money coming to the rescue of the airline more than once,the government must see the writing on the wall and prepare the political leadership for a strategic stake sale. The impending decision on 49 per cent FDI stake sale to foreign airlines,on which the government has already firmed up its policy,should enable Air India,too,to find a global investor.
