Editorial : Try bankruptcy for Air India’s sale

Download PDF

Now that no buyers have turned up for Air India, the next course of action should be for the state to make it clear that it would not invest any more money in the airline. If it can continue to service its debt, it can stay afloat(बचाए/बहता हुआ). If it defaults on debt, the creditors can initiate(आरंभ/पहल करना) bankruptcy proceedings under

the Insolvency(शोध-अक्षमता/दिवाला) and Bankruptcy(दिवालियापन) Code. If the resolution(संकल्प/प्रस्ताव) professional who takes charge of the airline can find a buyer for the airline as a going concern, that would be most welcome. But if it is unable to, it should then be liquidated(नष्ट करना/मिटा देना) and its individual assets sold to the highest bidder. Apart from a fleet(बेड़ा) of planes, Air India has real estate, bilateral(द्विपक्षीय/अतिरिक्त) rights to fly to and from foreign countries, coveted landing slots at airports around the world and in India, a skilled engineering wing and its Maharajah mascot(यंत्र/शुभंकर) that commands high recall.

It is possible that the government’s condition of keeping a 24% stake in the company has deterred(विचलित/रोक रखना) potential investors. Who would want a government nominee on the board, who would be under political compulsion(मजबूरी/अनिवार्यता) to vote against measures that the unions would label anti-labour? The government could make another attempt at divestment, dropping this condition. Or it could simply turn the tap off on fresh infusion(संचार/जलसेक) of funds, forcing either a turnaround on the part of its airline or its bankruptcy, leading to sale as a going concern or liquidation. Sale under bankruptcy would carry no condition such as a mandatory residual(बचत/शेष) stake for the government, and that could make Air India an object of desire. In either case, it would be a burden off the government’s back and send a clear message to other ailing public enterprises: shape up or prepare for the tender mercies(दया) of the Insolvency and Bankruptcy Code. The people of India need competently(योग्यतापूर्वक) run airlines to meet their aviation(विमान-वहन-विद्या/हवाबाज़ी )needs, not necessarily a state-owned carrier. Using Budget subventions to prop up an inefficient airline is iniquitous(अधर्म/अन्यायपूर्ण) in a country where state funding of healthcare is just about 1% of GDP and fiscal discipline is a concern in a volatile(परिवर्तनशील/अस्थिरमति) global economy. Aviation is a great commercial opportunity in India, not a sink for subsidy. Private enterprise can lead the way in the sky.

Important Vocabulary

1.Afloat(बचाए/बहता हुआ)
Synonyms:adrift, drifting
Antonyms: aground, ashore, beached, docked

2.Liquidated(नष्ट करना/मिटा देना)
Synonyms: convert, pay off, quit, reimburse, repay
Antonyms: remain, stay, take, fail

3.Fleet(बेड़ा)
Synonyms: speedy, barreling, brisk, fast, flying
Antonyms: slow, sluggish, clumsy

4.Deterred(विचलित/रोक रखना)
Synonyms: avert, block, dampen, daunt, discourage
Antonyms: advance, aid, allow, assist, calm

5.Compulsion(मजबूरी/अनिवार्यता)
Synonyms: coercion, obsession, preoccupation, urgency, constraint
Antonyms: free will, freedom, independence, liberty, license

6.Competently(योग्यतापूर्वक)
Synonyms: ably, efficiently, expertly, skillfully, adeptly