Air India’s weak turnaround attempt is an example of how difficult it could be.
If there’s a single national carrier that has much in common with SAA, then it’s Air India. For years, it has done precisely what SAA has been guilty of – wasting billions and continually sucking at the teat of the cow that is treasury. In other words, the money to keep it afloat comes from the taxpayer’s pocket in the midst of questionable management and valuable benefits passed on to politicians and others with the correct political connections; even well-paid positions in the airline.
Just as at SAA, its turnaround attempts came to nothing amidst many discussions about privatising to get it off the taxpayer’s back. In March, a breakthrough was reached when the government of the Indian prime minister, Narendra Modi, announced that Air India, which was established in 1932 and functioned as a monopoly for many years, would be privatised.
Since then, there has been one setback after the other. Private entities have hardly shown any interest in getting involved in this inefficient and debt-ridden airline. Not a single bid has thus far been received. The deadline for making an offer is 31 May.
Pundits in the aviation industry mention the following factors when a subsidised airline wants to privatise:
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