Air India's privatisation Fails to Lift Off

11 Apr 2024 CW Team

Two years after its privatisation, Air India's journey towards financial recovery is still facing significant challenges, with the airline struggling to achieve its turnaround goals. Despite initial optimism surrounding the privatisation process, Air India continues to grapple with operational inefficiencies and financial constraints.

The privatisation of Air India was intended to revitalise the airline and position it for sustainable growth in the competitive aviation market. However, the anticipated turnaround has yet to materialise, as Air India continues to face hurdles in its path to profitability.

Several factors contribute to Air India's ongoing struggles, including fierce competition from private carriers, legacy issues, and a high debt burden. Despite efforts to streamline operations and cut costs, the airline's financial performance remains below expectations, hampering its ability to regain market share and improve profitability.

Moreover, the impact of the COVID-19 pandemic has further exacerbated Air India's challenges, leading to a sharp decline in passenger demand and revenue. The pandemic-induced disruptions have forced the airline to scale back operations and incur additional losses, further delaying its recovery efforts.

While privatisation was seen as a potential solution to Air India's woes, the airline continues to face an uphill battle in its quest for profitability and sustainability. The government and stakeholders must work together to address the underlying issues plaguing Air India and chart a viable path forward for the national carrier.

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