Air India Seeks A Buyer

IndiGo and Jet Airways have opted out of the race for Air India, but global interest in buying a stake in the debt-ridden national carrier might still help it fly out of turbulent weather.

- Purba Das

When Air India's iconic maharaja abdicated his throne for a younger version in jeans and spiky hair in an effort to connect with the masses in 2015, many hoped the new mascot would mark a fresh beginning for the loss-making airline. For years, the national carrier had been a quintessential white elephant for the government with massive debt on its books and a reputation for being highly inefficient and bureaucratic. But just a cosmetic logo change wasn’t enough. Despite the government’s efforts to pump in millions to keep the flagship carrier solvent, Air India continued to make losses and it seemed like it was only a matter of time before it was finally put on the block.

So, when the government announced its decision last year to sell Air India and its subsidiaries, the industry wasn’t surprised. What was surprising was that despite Air India’s debt of Rs 51,000 crore, several airlines were keen to join the race for the state-run carrier. Budget carrier IndiGo was one of the earliest to express interest; others such as Jet Airways, Tata Sons, and a few global airlines followed suit.

Perhaps it was Air India’s storied history that attracted suitors. It began its journey as Tata Airlines in 1932 when legendary entrepreneur J.R.D. Tata flew its first single-engine de Havilland Puss Moth, carrying air mail from Karachi to Bombay’s Juhu aerodrome, and on to Madras (now Chennai). There was no turning back after that. After World War II, Tata Airlines became a public limited company in 1946 and was rebranded Air India. After Independence, the government acquired 49% of the airline in 1948. On June 8, 1948, Air India launched its first international flight when a Lockheed Constellation L-749A named Malabar Princess flew from Bombay (now Mumbai) to London. Eventually, India’s first international airline was nationalised in 1953 as part of post-Independence India’s tryst with socialism.