DNA Money Edit: Air India and the cost of delayed decision

It looks like the government wants to play safe with Air India's privatisation as general elections are just around the corner. Weeks after the divestment process found no takers for the beleaguered national carrier, the government said it would soon review the plan to sell a stake in Air India. The process, now turned out to be a complete failure, was anyway facing stiff resistance from not only the opposition but from some within the government.

The critics alleged that the disinvestment would mean that we are giving away the family silver at a throwaway price. The minister of state for civil aviation, Jayant Sinha on Wednesday said that the government is committed that Air India remains an independent, globally-competitive and a highly-successful airline.

As the government has decided to drop the disinvestment plan for time being, we are back to square one. The airline will continue to bleed over Rs 10 crore of public money every day. Aviation consultancy firm CAPA had rightly said that privatisation of AI necessitates bold decisions and there will never be a perfect time. The more time passes, the more difficult the decision becomes.

So another year of inaction would mean a loss of Rs 3,600 crore. No government can ever afford the cost of a delayed decision.

Air India