Selling India’s ‘Jewel’ in one rupee: The case of Air India

Abstract

The Cabinet Committee on Economic Affairs of India decided to privatize the debt-ridden Air India. The airline was under debt-trap since the merger of Air-India and Indian Airlines in 2007. AI was surviving on the bailout package. Just before the CCEA decided to privatize AI, there was a series of newspaper editorials on AI, and most recommended its privatization. This paper aimed to compile the opinions of experts and economists. As privatization is not the solution for all ills, this paper argues to give a chance to the recovering AI for turnaround and to compete as a public enterprise.