Air India is for Sale – But Why Would Anyone Buy It?

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In his weekly series “The Capitalmind Show”, famed financial expert Deepak Shenoy of Capitalmind is back to explain the intricacies of Indian businesses and markets. In this episode, Shenoy tackles the government’s disinvestment of Air India.

Ever since they came into power in 2014, the BJP administration have been looking to sell as many public companies as possible. While that may sound harsh, there are multiple entities that need to be weaned off the public’s tax money. Air India is a perfect example.

Once bought off the Tatas by the government to become the national airline, the commercial airline has failed to successfully compete since the era of liberalisation. The boom of new rivals has left Air India behind, especially after their failed merger with Indian Airlines in 2007.

Today, the company ‘boasts’ tens of thousands of crores in debt and the government is unable to find a private buyer willing to pick up the pieces. Yet, Shenoy insists that he would buy Air India in a heartbeat if he was only looking at their assets. But what are these assets, and can they really help any private player become any better?

You can also listen to this video as a podcast here.

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