THE DE­CI­SION TRAP

Business Today - - THE BUZZ - – Manu Kaushik

IT WAS AMONG the wis­est de­ci­sions taken, when the Fi­nance Min­istry junked Air In­dia’s de­mand for a ` 30,000-crore fund in­fu­sion, re­port­edly be­cause the air­line didn’t present a turn­around plan.

The Fi­nance Min­istry had dis­cussed a

` 11,000- crore bailout pack­age with the Civil Avi­a­tion Min­istry ear­lier when the at­tempt to sell a 76 per cent eq­uity stake in the Ma­haraja bombed.

One could well ar­gue that for a gov­ern­ment pre­par­ing for the gen­eral elec­tions next year, there are more ur­gent is­sues than re­viv­ing Air In­dia. The air­line has al­ready sucked in ` 28,175 crore from the

` 30,231- crore (10-year) turn­around plan (TAP) ap­proved by the pre­vi­ous gov­ern­ment in 2012 with a mar­ginal im­prove­ment in its oper­at­ing prof­its for two con­sec­u­tive years but with the de­te­ri­o­ra­tion in mar­ket fun­da­men­tals, Air In­dia will most likely strug­gle with prof­itabil­ity yet again.

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