11 Apr 2024
2 Min Read
CW Team
The privatisation of Air India was intended to revitalise the airline and position it for sustainable growth in the competitive aviation market. However, the anticipated turnaround has yet to materialise, as Air India continues to face hurdles in its path to profitability.
Several factors contribute to Air India’s ongoing struggles, including fierce competition from private carriers, legacy issues, and a high debt burden. Despite efforts to streamline operations and cut costs, the airline’s financial performance remains below expectations, hampering its ability to regain market share and improve profitability.
Moreover, the impact of the COVID-19 pandemic has further exacerbated Air India’s challenges, leading to a sharp decline in passenger demand and revenue. The pandemic-induced disruptions have forced the airline to scale back operations and incur additional losses, further delaying its recovery efforts.
While privatisation was seen as a potential solution to Air India’s woes, the airline continues to face an uphill battle in its quest for profitability and sustainability. The government and stakeholders must work together to address the underlying issues plaguing Air India and chart a viable path forward for the national carrier.