Air India Privatisation

From: kushal_g@hotmail.com
To: editet@timesgroup.com
Subject: 'Should Air India Be Privatised'
Date: Wed, 14 Sep 2011 03:26:56 +0000


This refers to the views expressed in the column 'Face Off'. Both the writer have missed some very vital points on the issue. Since I was the Joint Secretary Ministry of Disinvestment during 2000-2002 when Air India privatisation was almost done (as out of 80 broad steps we had covered 79 and the final financial-cum-technical bid was to come), I have first hand knowledge on the issue. Tata-Singapur Airlines Consortium were the sole bidder. The main reason for the deal getting aborted at the doorstep was the split in the Consortium due to reasons not in any way related to valuation or even the issues highlighted by the two writers. In fact the excellent skills of AI's cockpit crew as well as the technical staff had almost offset the higher Manpower-Aircraft ratio of Air India (700 vis-a-vis 300 in American/ European Airliners at that time). Further, the training and maintenance infrastructure available jointly with Indian Airlines in the country, forms an attractive carrot for any strategic partner. However, it is difficult to counter the point made by Rajiv Pratap Rudy that the beneficiaries of the largesse of State owned Air India will keep on opposing moves to privatise the entity. But let their be no doubt in anybody's mind that the best option available now is to immediately privatise Air India to restore its prestine glory and save the scarce financial resources of the country for better purposes.

K.K.Gupta, Retired IFS(HP:71)
C-90, Sector 3, New Shimla-171009