Air India draws up privatisation plans

India’s government is moving towards privatising the country’s beleaguered national airline, which has floundered amid stiff competition from no-frills rivals and reported at least seven years of losses. Finance minister Arun Jaitley said on Thursday that the civil aviation ministry had been asked to prepare a plan for the government to sell off Air India, which has been reliant on a US$6.5b bailout since 2012.  The National Institution for Transforming India, or Niti Aayog, an influential government policy advisory group chaired by prime minister Nirendra Modi, “has given its recommendations to the civil aviation ministry which will decide on the process of disinvestment in Air India," said Mr Jaitley who has long pushed for the airline’s sale. The Niti Aayog consults with the government on long-term policy. While its recommendation is not binding, the move will trigger a debate about the future of Air India. Ashok Gajapathi Raju, the civil aviation minister, has also called for Air India to be sold. However, on Wednesday he said that the country might have trouble drumming up interest in the indebted airline. “There are hardly any bakras [investors] around so to get one is difficult. “One thing is for sure, the taxpayer’s money cannot be committed for eternity.” Neelam Matthews, an aviation analyst, said Air India would struggle to find investors able to fund its debt. “Even if it happens, the government will have to give relief to Air India — their debt is so high no one is going to invest that much unless they have really deep pockets.”<br/>