It’s now official. India shall sell 100% of Air India. The government has explicitly stated that all its shares will be on the block. The loss-making flag carrier found no takers last year, when the Centre sought to sell 76% of its stake. With just 24% ownership left, New Delhi would not have been able to disrupt major moves by a new majority owner, but the very fact that it would have some voting rights was said to have put off prospective buyers.
There were other burdens, too, that kept bidders away, such as riders on employee retention and the airline’s mountain of debt. Reports suggest that the latter will be pared down significantly for the new package on offer. Presumably, Air India’s full privatization would also mean that an incoming boss would be free to downsize the staff to levels consistent with its operations. This would likely invite protests. But as much as ₹56,000 crore has been pumped into the airline over the past decade and a country like ours can’t afford such a drain.
