- J.R.D Tata founded Tata Airlines in 1932 which later became Air India in 1946 when it was made a public limited company. The Government of India acquired 49% of Air India in 1948. - Air India has faced significant financial struggles in recent decades due to high debt, loss-making international operations, and mismanagement. This has led the government of India to approve disinvestment of Air India in 2017 in an attempt to privatize the airline. - Privatizing Air India faces challenges such as convincing banks to write off large debts and addressing concerns of employees, but reducing debt levels, selling non-core assets, and making the deal attractive to prospective buyers are suggested as ways for the government to

1. Air India
SUBMITTED BY
ADHIROOP B

2. History
 1932- J.R.D Tata founded Tata Airlines
 1946- Tata Airlines became a public limited company under the name of
Air India
 1948- 49% of the Airline was acquired by Government of India
 1953- Nationalization of Air Transportation Industry
 1960- Air India flew its first International flight
 1962- Air India became the world’s first all-jet Airline

3.  1971- The Airline took delivery of its first Boeing(Emperor Ashoka)
 1993- Air India took delivery of the Flagship
 1994- The Airline was registered as Air India Ltd
 2007- The Gov. of India announced that Air India would be merged with
Indian Airlines
 2011- Air India and Indian Airlines merged along with their subsidiaries to
form Air India Limited
 2017- Cabinet approves disinvestment of Air India

4. Gulf war evacuation
 175000 people were evacuated
 488 Flights were used
 59 days of operation
 Guinness Book of World Records

5. Crisis
 Less income in passenger Revenue
 Low monetization of assets
 Non-availability of proper aircraft
 Mismanagement in granting bilateral agreements with foreign countries
 Loss making international operations
 Mismanagement of manpower

6.  Privatization

7. Arguments in favor of Privatization
 Huge Debt
 Overstating profit
 Failure of 2012 Bailout package
 Wastage of Tax payers money
 Against the principles of market economy
 Will give a push to pending reforms

8. Challenges in Air India Privatization
 Written off all non-aircraft related debts
 Difficult to convince Banks to agree such a massive write-off
 Problem of employees
 Main challenge is getting an investor

9. What should be the way ahead of
government?
 Government should make the deal attractive for a prospective buyer
 Government should reduce the level of debt in the company
 Government can sell its non-core assets
 Government should try convincing the financial institutions to convert a
part of the debt into equity
 The government can even infuse equity capital one last time in Air India

10.  Thank you