The Central Government national carrier has come to such an pass that the Government has decided to privatise it but it, is under such heavy loss and debt that no one coming forward to purchase it. What a irony of situation that Prime Minister Pandit Nehru nationalized to profit earning private sector airlines the Tata Airlines of Tata Group and Bharat Airways of Birla House to form the Government undertaking Air India and its subsidiary the Indian Airlines.
After few years it incurred losses and undergone ever increasing debt. Presently the Air India has a total debt of Rs. 58,000 crore and its cumulative loss is to the tune of Rs. 70,000 crores. In the current year of 2018-19 the Air India incurred the loss of Rs. 7,800 crores.
The Union Civil Aviation Minister Mr Hardeep Singh Puri has announced the Parliament that Air India has to be privatise in order to save it. The Government was not equipped to run the Air India.
The Government has kept the Air India operational by giving it capital support from the Central Budget. Even then the Air India could not emerge as profit earning national carrier Recently two private sector airlines the King Fisher Vijay Malliya and Jet Airlines of Naresh Goel closed down under heavy losses and there two airlines could not pay back the loan taken from the banks.
Why to blame these two industrialist for running the airlines in losses and not paying back bank loan. Even Government could not run its Air India in profit comes it is also under heavy debt. Like Air India the King Fisher and Jet Airlines could not be provided time to time capital support from the Budget. When Jet Airlines was facing closure due to consent losses the Government suggested to banks to provide capital support by way of fresh loans. The banks considered the Government plea but refused to finance it any further in any way and Jet Airlines closed down.
No Government, industrialist or businessmen deliberately want to run their concern in loss and close it down. But in trade industry and commerce there are situations when business incur in losses and go under heavy debt and they have no financial capacity to pay back. Before King Fisher fiasco Vijay Malliya was a very successful industrialist, super such and king of IMFL (India Made Foreign Liquor) Industry in India. But he any how could not run his diversified business in civil airlines company King Fisher and could not repay bank loans. The Air India is also defaulter in repayment of loan. Vijay Malliya and Naresh Goel should be tarnished as villian being defaulter in repayment bank loans.