It has been only downs for Air India. Caught in a tight-jacketed financial bind, the airline started its downhill journey a long ago and if nothing is done to revive its fortunes by the end of this financial year, India could bid farewell to the iconic national carrier. A report
If there is one symbol that the Narendra Modi-led government would like to keep behind closed doors it is Air India’s Maharaja. However well-intentioned the proposal to divest Air India might have been, the scenario is similar to Hamlet’s “To be, or not to be: that is the question” dilemma. Only this time around it is simply: “To sell or not to sell: that is the question”.
The question apart, the fact remains that the conditions attached to the sale scared the potential bidders leaving the government in a Catch-22 situation: keeping the Maharaja alive would be drain taxpayers’ money and closing it down would take its toll on its employees.
All this was because despite the efforts of the Civil Aviation Ministry, not one bidder showed interest in Air India till May 31, the deadline for the ‘Expression of Interest’ (EOI) bids under AI's divestment process. In fact, the government had clarified details in its EOI on May 1: these included plans of retaining the 24 per cent stake in the divested entity, provision of ESOPs (employee stock ownership plan) and on the total debt and liabilities that were expected to remain with AI.
Ernst &Young, the government’s disinvestment adviser for Air India, gave three reasons for the no-show of bidders: a) Government not willing to part with 100 per cent of the carrier; b) Keeping the present set of employees; and, c) Running the airline by proxy for the first three years. A question then that keeps popping up is: Shouldn’t Ernst & Young have advised the government after due diligence? Shouldn’t the adviser given proper warning?
Esta historia es de la edición July 2018 de Cruising Heights.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición July 2018 de Cruising Heights.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
Jets, Tech, And Green Goals
The key themes at the Farnborough International Airshow 2024 revolved around innovation and sustainability. Sizeable aircraft orders, advancements in eVTOL technology, and a strong commitment to environmental goals underscore an industry that is not only rebounding from past challenges but also setting the stage for a more sustainable and technologically advanced future, reports ATUL CHANDRA.
FREIGHT IN FLIGHT
In 2023, Indian airports handled over 3.15 million metric tonnes of cargo, with international freight dominating. As the sector aims to meet the government's ambitious annual target of 10 million metric tonnes (MMT) by 2030, this goal will require dedicated freighter aircraft, technological integration, infrastructure development, and regulatory improvements, among other things. By JAIDEEP MIRCHANDANI, Chairman, Sky One
ELEVATING PASSENGER EXPERIENCES
Panasonic Avionics Corporation is setting new standards in in-flight entertainment and connectivity (IFEC) with the launch of its state-of-the-art software design and development facility in Pune, highlights
CAUGHT IN PAPER JAM
Despite rapid digital advancements in passenger air travel with the airline market expected to surpass $35 billion by end of this decade, the air cargo industry remains bogged down by outdated legacy systems, impeding progress in efficiency and real-time tracking. A special report by
PITCHING FOR SUPPORT
India's air cargo industry is gearing up for a major transformation, aiming to nearly triple its capacity by 2030. Current infrastructure handles about 6.5 million tonnes, but meeting future goals will require significant investments to expand capacity, streamline operations, and adopt cutting-edge technologies. Industry leaders at a recent ACFI Annual Conclave emphasised the need for strong government support to overcome challenges, urging policymakers to address operational constraints and improve connectivity, reports
BATTLE FOR THE SKIES
As India's international air traffic experiences significant growth over the past few decades, the competition between Air India and IndiGo intensifies. Vistara's merger within Air India and the significant aircraft orders position the combined entity as a formidable player, while IndiGo's ambitious expansion plans and international focus set the stage for a competitive future, analyses
"We Aim to Bridge the Training Gap in Indian Aviation"
In a candid conversation with CRUISING HEIGHTS, KHUSHBEG JATTANA, General Manager India of Simaero, discusses the strategic timing of Simaero's entry into the Indian aviation market. He addresses the challenges posed by existing pilot training programmes from major airlines like Air India and IndiGo, and elaborates on Simaero's plans to complement these efforts with state-of-the-art training solutions. Jattana also sheds light on the potential growth in the South Asian region and the company's vision for the future.
POWERING UP
Urban Air Mobility providers are accelerating their eVTOL development programmes, reports
Transforming Air Traffic Control Training: CAE's Cutting-Edge Approach
In this interview, MARIE-CHRISTINE CLOUTIER, CAE's Vice-President of Performance, Strategy, and Marketing, discusses CAE's air traffic control training program. Highlighting strategic partnerships, advanced technologies, and global initiatives, the interview reveals how CAE addresses the growing demand for skilled air traffic controllers and flight service specialists. From their dedicated Montreal facility to expanding efforts across the globe, CAE is committed to providing tailored, state-of-the-art training solutions for the aviation industry's future.
POWERING A GREEN FUTURE
FIA 2024 witnessed a growing order book for aircraft engine manufacturers and provided important insights into the development of sustainable powerplants.
