The swift government clarification that the divestment of Air India remains on the cards, contrary to Civil Aviation Minister Hardeep Singh Puri’s statement in Parliament that suggested its sale would be deferred in the face of high crude oil prices and volatile foreign exchange rates, signals the Centre’s intent to plug the drain on its resources that the loss-making airline has long and sadly been.
The Maharaja, the flag carrier’s mascot, is virtually pauperized, and is creaking under a ₹58,000-crore mountain of debt. The carrier remains airborne only artificially, courtesy periodic infusions of cash by the government. However, given India’s perennial budgetary constraints, the Centre cannot afford to throw good public money after bad endlessly. Also, putting on hold the airline’s privatization due to high international crude prices and currency fluctuations would be a lame excuse, since neither oil prices nor currency rates are likely to stabilize in the foreseeable future.
