Air india

This presentation is mainly related to privatization of Air India

1. Air India Submitted By Adhiroop b

2. History 1932- J.R.D Tata founded Tata Airlines 1946- Tata Airlines became a public limited company under the name of Air India 1948- 49% of the Airline was acquired by Government of India 1953- Nationalization of Air Transportation Industry 1960- Air India flew its first International flight 1962- Air India became the world’s first all-jet Airline

3. 1971- The Airline took delivery of its first Boeing(Emperor Ashoka ) 1993- Air India took delivery of the Flagship 1994- The Airline was registered as Air India Ltd 2007- The Gov. of India announced that Air India would be merged with Indian Airlines 2011- Air India and Indian Airlines merged along with their subsidiaries to form Air India Limited 2017- Cabinet approves disinvestment of Air India

4. Gulf war evacuation 175000 people were evacuated 488 Flights were used 59 days of operation Guinness Book of World Records

5. Crisis Less income in passenger Revenue Low monetization of assets Non-availability of proper aircraft Mismanagement in granting bilateral agreements with foreign countries Loss making international operations Mismanagement of manpower

6. Privatization

7. Arguments in favor of Privatization Huge Debt Overstating profit Failure of 2012 Bailout package Wastage of Tax payers money Against the principles of market economy Will give a push to pending reforms

8. Challenges in Air India Privatization Written off all non-aircraft related debts Difficult to convince Banks to agree such a massive write-off Problem of employees Main challenge is getting an investor

9. What should be the way ahead of government? Government should make the deal attractive for a prospective buyer Government should reduce the level of debt in the company Government can sell its non-core assets Government should try convincing the financial institutions to convert a part of the debt into equity The government can even infuse equity capital one last time in Air India

10. Thank you