Air India needs bankruptcy before sale
It's been 16 years since Air India was last on the block. Now, India is again mulling the idea of selling 51% of the carrier. But the economics are no longer the same. In the early 2000s, Air India's main problem was inefficiency and red tape. It had 3 times as many staff per plane as global airlines, and wasn't even permitted to hedge energy costs using derivatives: Pilots would shop for cheaper jet fuel in Singapore and Dubai. It's a different story now. Air India's reputation for being among the most unreliable airlines worldwide is intact. A bigger worry for any potential owner, however, is the dysfunctional capital structure. A decade ago, the govt decided to bulk up the airline. The plane-buying spree that ensued pushed up debt more than 20-fold. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-03-02/star/air-india-needs-bankruptcy-before-sale
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Air India needs bankruptcy before sale
It's been 16 years since Air India was last on the block. Now, India is again mulling the idea of selling 51% of the carrier. But the economics are no longer the same. In the early 2000s, Air India's main problem was inefficiency and red tape. It had 3 times as many staff per plane as global airlines, and wasn't even permitted to hedge energy costs using derivatives: Pilots would shop for cheaper jet fuel in Singapore and Dubai. It's a different story now. Air India's reputation for being among the most unreliable airlines worldwide is intact. A bigger worry for any potential owner, however, is the dysfunctional capital structure. A decade ago, the govt decided to bulk up the airline. The plane-buying spree that ensued pushed up debt more than 20-fold. <br/>
