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Air India privatisation a 'certainty': CAPA

8-Oct-2013 11:17 AM

CAPA - Centre for Aviation stated (07-Oct-2013) privatisation of Air India "is now a certainty and will be a priority on the agenda of the next government". CAPA explained "Despite the fact that Air India’s performance has improved significantly across operational, commercial, customer service and financial metrics under the current management team, we rule out the possibility of Air India’s return to profitability under its current ownership structure given the underlying structural problems and fast changing market dynamics". It concluded: "With the carrier expected to post continued losses, the next government which takes office in 2014 must finally bite the bullet and commence the privatisation of Air India. If the government is prepared to privatise all of the Airports Authority of India’s profitable airports there appears to be no reason to hold on to the loss-making national carrier." [more - CAPA Report]