Active Stocks
Fri Sep 22 2023 15:58:38
  1. Tata Steel share price
  2. 126.7 -0.86%
  1. HDFC Bank share price
  2. 1,529.2 -1.57%
  1. State Bank Of India share price
  2. 598.1 1.67%
  1. Power Grid Corporation Of India share price
  2. 199.1 -1.34%
  1. Tata Motors share price
  2. 621.1 -0.93%
Business News/ Opinion / Air India for sale?

A denial from the government was quick to arrive after a news agency reported on Wednesday that the administration is considering selling a 49% stake in debt-laden Air India. There is definitely merit in pursuing such a proposal; disinvestment in Air India is long overdue. And with the sector’s prospects looking better due to lower crude oil prices, the chances of getting a better valuation are also high. In fact, the government would do well to sell a controlling stake in the airline for reasons that are well understood.

Private companies now have a vibrant presence in India’s aviation sector. The state-owned airline is losing market share—competition will only intensify in times to come. Moreover, the most pressing issue is of the fiscal cost associated with running such a company and the market distortion that it creates. Coming to that, the merits of the government moving out of business are not limited to the aviation sector.

"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Updated: 31 Mar 2016, 02:51 AM IST
Next Story
Recommended For You
Switch to the Mint app for fast and personalized news - Get App