The skies appear hazy if Air India shuts operations

Air India Ltd may have to shut shop if the government fails to privatize the airline in its second attempt, aviation minister Hardeep Singh Puri told the upper house of Parliament on Wednesday. Mint looks at the impact of the potential closure of the carrier on the aviation sector.

What might happen soon after the closure?

Air travellers will feel the pinch as tickets will become dearer. Air India, along with its subsidiaries Alliance Air and Air India Express, has 169 aircraft. If the national carrier shuts down, a large chunk of capacity will be removed from the market overnight. This will lead to a capacity shortage, similar to the one seen after Jet Airways was grounded in April, which will drive up fares in the short term.