I for the life of mine, fail to understand why government of India is carrying the huge burdon of Air India. I have travelled through the Indian state airlines once. Once is enough! If you have had the ‘pleasure’ of travelling through the ‘Maharaja’ of sky, you don’t need to be a financial honcho to know why the airline is failing (and not ailing even after the once thought ‘life saving’ merger of Indian airlines with India’s official international sky carrier.
The National Aviation Company of India (NACIL), formed by the merger of the two airlines, ran up losses of Rs 2,200 crore in 2007-08 . Losses for 2008-09 estimated at over Rs 5,000 crore. In 2009-10 , losses could exceed Rs 12,000 crore. Whether it is the CAG report asserting AI’s cumulative loss of 40,000 crores because of strategically and structurally wrong decisions or the customer experience vis a vis the ‘shagun’ voucher controversy (to mention one!), nothing really could provide more insight than what one could learn just by taking an AI flight to any destination.
It is not only an awful waste of tax payers money, but also a scandalous loss of opportunity of the business. And you would think that eight years of government led by a world class economist could do wonders to one of the biggest taxpayers’ run businesses. AI should listen to it’s mentor Lufthansa-German carrier partly privatised in 1992 and fully five years later.
3. Privatise Air India, says top Lufthansa official. articles.economictimes.indiatimes.com/2011-05-22/news/29571258_1_german-carrier-lufthansa-german-airlines-air-india
4. CAG slas AI for 200 crore loss. http://www.ndtv.com/article/india/cag-slams-air-india-for-rs-200-crore-loss-124632