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Air India Disinvestment Deal - Coggle Diagram
Air India Disinvestment Deal
What is the deal?
Domestic as well as international aviation
Ownership of brands like Air India, Indian Airlines and the Maharajah
Tatas will own 100% stake in Air India
History of Air India
1947: India gains independence
1948: Government bought 49% stake in AI
Named as TATA Airlines
JRD Tata founded the airline in 1932
1953: Air India was nationalised
Why was Air India sold?
Continuous losses
Losses even after merging with the domestic carrier, Indian Airlines
Odd idea: government running an airline
Incurring losses: Wastage of taxpayers money
Growing competition since 1991 liberalisation
Why wasn’t it sold earlier?
Govt dint give up regulatory stakes
Earlier disinvestment bid failed
Govt not bearing debts
Fear over Operational Freedom
How did sale occur?
Complete Operational freedom
Govt sharing of debts
Govt gives up all stakes
Significance of the deal
Business perspective
Increasing competence by Indian brand
Private sector boost for govt failure
Business success for TATAs
From the govt’s perspective
Easing burden on taxpayers
Major economic reform
Successful disinvestment
Economic perspective
Govt giving up its over-conservatism
Roadmap for future disinvestments
Complete liberalization of an industry