{"id":165533,"date":"2022-01-31T22:07:59","date_gmt":"2022-01-31T16:37:59","guid":{"rendered":"https:\/\/blog.forumias.com\/?page_id=165533"},"modified":"2022-01-31T22:07:59","modified_gmt":"2022-01-31T16:37:59","slug":"answered-do-you-think-the-recent-privatization-of-air-india-is-good-for-all-the-stakeholders-substantiate","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/answered-do-you-think-the-recent-privatization-of-air-india-is-good-for-all-the-stakeholders-substantiate\/","title":{"rendered":"[Answered] Do you think the recent privatization of Air India is good for all the stakeholders? Substantiate."},"content":{"rendered":"<table style=\"border-collapse: collapse; width: 100%;\">\n<tbody>\n<tr>\n<td style=\"width: 100%;\"><b><span data-contrast=\"none\">Introduction:<\/span><\/b><span data-contrast=\"none\"> Write a brief about Air India privatization.\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559731&quot;:0,&quot;335559737&quot;:0,&quot;335559740&quot;:240}\"><br \/>\n<\/span><b><span data-contrast=\"none\">Body: <\/span><\/b><span data-contrast=\"none\">write about the benefits of Air India Privatization to different stakeholders. Write few issues associated with privatisation.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559731&quot;:0,&quot;335559737&quot;:0,&quot;335559740&quot;:240}\"><br \/>\n<\/span><b><span data-contrast=\"none\">Conclusion:<\/span><\/b><span data-contrast=\"none\"> Provide a new and balanced perspective on privatisation.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559731&quot;:0,&quot;335559737&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>Ans-<\/strong><span data-contrast=\"none\"><strong>\u00a0<\/strong>\u00a0<\/span><span data-contrast=\"none\">\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559731&quot;:0,&quot;335559737&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Air India (AI) has been recently handed over to Tata group, ending its public ownership. The Tata group won the auction in October with a bid of Rs 18000 crore.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559731&quot;:0,&quot;335559737&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><strong>This transfer will have significant positive impacts on different stakeholders:\u00a0<\/strong><\/p>\n<p><b><span data-contrast=\"none\">Government<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559731&quot;:0,&quot;335559737&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\u2022\" data-font=\"Georgia Pro\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">It will take the government closer to its <\/span><b><span data-contrast=\"none\">disinvestment target <\/span><\/b><span data-contrast=\"none\">for the current financial year.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u2022\" data-font=\"Georgia Pro\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">It will provide the much-needed <\/span><b><span data-contrast=\"none\">financial resources<\/span><\/b> <b><span data-contrast=\"none\">for the recovery of economy<\/span><\/b><span data-contrast=\"none\"> and meet the expectation of greater outlay for health care.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\u2022\" data-font=\"Georgia Pro\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">Air India was making losses around 20 crores per day. It had consumed Rs 1.1 lakh crore since 2009. it will <\/span><b><span data-contrast=\"none\">save taxpayers money<\/span><\/b><span data-contrast=\"none\"> from paying for daily losses of AI.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u2022\" data-font=\"Georgia Pro\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">It would provide the <\/span><b><span data-contrast=\"none\">push for taking other tough disinvestment decisions<\/span><\/b><span data-contrast=\"none\"> that the government in keen on taking in future.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u2022\" data-font=\"Georgia Pro\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"none\">It will provide push for <\/span><b><span data-contrast=\"none\">Minimum government Maximum governance<\/span><\/b><span data-contrast=\"none\"> to eliminate the need for the government<\/span><span data-contrast=\"none\">\u2019<\/span><span data-contrast=\"none\">s involvement in non-strategic areas.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><b><span data-contrast=\"none\">The airline industry<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559731&quot;:0,&quot;335559737&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\u2022\" data-font=\"Georgia Pro\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">A strong international carrier in India will <\/span><b><span data-contrast=\"none\">give a boost to the large airports<\/span><\/b><span data-contrast=\"none\"> built in Delhi, Hyderabad, Mumbai and Bengaluru.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u2022\" data-font=\"Georgia Pro\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">It will possibly give the option of flying <\/span><b><span data-contrast=\"none\">one more low-cost carrier domestically<\/span><\/b><span data-contrast=\"none\">. Which will provide diverse options to the flyers.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u2022\" data-font=\"Georgia Pro\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"none\">The combination of <\/span><b><span data-contrast=\"none\">Vistara, Air Asia and Air India<\/span><\/b><span data-contrast=\"none\"> can create a large airline that can compete with the major international lines.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><b><span data-contrast=\"none\">The Tata Group<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559731&quot;:0,&quot;335559737&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\u2022\" data-font=\"Georgia Pro\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">It is an <\/span><b><span data-contrast=\"none\">emotional win for Tatas<\/span><\/b><span data-contrast=\"none\">, rooted in the fact the airline was creation of Tatas in 1932, which was later nationalized.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u2022\" data-font=\"Georgia Pro\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">Apart from emotional win, it will provide<\/span><b><span data-contrast=\"none\"> access to ground resources, monopolized international routes, and a fairly new fleet<\/span><\/b><span data-contrast=\"none\"> of aero-planes of Air India.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><b><span data-contrast=\"none\">Indian economy<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559731&quot;:0,&quot;335559737&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\u2022\" data-font=\"Georgia Pro\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">It has the potential to<\/span><b><span data-contrast=\"none\"> push the growth in India\u2019s tourism industry. Air India will provide an alternative<\/span><\/b><span data-contrast=\"none\"> of foreign carriers, to tourists.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u2022\" data-font=\"Georgia Pro\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">A successful turnaround of Air India could also help the Indian economy as it is a well-established fact that aviation has a <\/span><b><span data-contrast=\"none\">multiplier effect on the economy.<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u2022\" data-font=\"Georgia Pro\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"none\">It will <\/span><b><span data-contrast=\"none\">raise investor\u2019s confidence<\/span><\/b><span data-contrast=\"none\"> in Indian economy, promoting efficiency in PSUs in particular.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"none\">Even with its potential benefits stakeholders, there are still concerns\u00a0\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559731&quot;:0,&quot;335559737&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\u2022\" data-font=\"Georgia Pro\" data-listid=\"4\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">the Sale of Air India still leaves Government with <\/span><b><span data-contrast=\"none\">Rs 43,562 crore of debt<\/span><\/b><span data-contrast=\"none\">, which will have to be serviced from other sources<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u2022\" data-font=\"Georgia Pro\" data-listid=\"4\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">The <\/span><b><span data-contrast=\"none\">governance issues<\/span><\/b><span data-contrast=\"none\"> in functioning of PSUs,\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u2022\" data-font=\"Georgia Pro\" data-listid=\"4\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Political Interference<\/span><\/b><span data-contrast=\"none\"> in management of PSUs.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"none\">Privatisation of government owned companies shall not be looked at only from the perspective of raising revenue, but also from the perspective of more productive utilization of assets. The privatization of government companies shall also be accompanied with reforms in the existing public sector.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559731&quot;:0,&quot;335559737&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction: Write a brief about Air India privatization.\u00a0 Body: write about the benefits of Air India Privatization to different stakeholders. Write few issues associated with privatisation. Conclusion: Provide a new and balanced perspective on privatisation.\u00a0 Ans-\u00a0\u00a0\u00a0\u00a0 Air India (AI) has been recently handed over to Tata group, ending its public ownership. The Tata group won&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/answered-do-you-think-the-recent-privatization-of-air-india-is-good-for-all-the-stakeholders-substantiate\/\">Continue reading <span class=\"screen-reader-text\">[Answered] Do you think the recent privatization of Air India is good for all the stakeholders? Substantiate.<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-165533","page","type-page","status-publish","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/165533","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=165533"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/165533\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=165533"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}