Now that the dust has almost settled on the government’s failed attempt to sell its 76 per cent stake in the state-owned Air India, it is time for it to start considering what would be good for the airline both in the short and long term. This becomes important as the reason why the government opted for divestment was that it did not want to keep endlessly funding the airline. With the airline losing close to ₹15 crore a day there is little choice left but to have a time-bound programme to revive its fortunes.

However, so far what one has seen are at best cosmetic changes like some frivolous cost cutting measures. For instance, will the airline make a dent in its ₹20,000-crore debt by downgrading the hotels that its crew stay in and share rooms? Staff salaries at Air India are still being delayed as are flights. On acquiring more aircraft its rivals like Jet Airways and IndiGo are ordering and inducting new aircraft while Air India only recently finished inducting the last of the 68 aircraft that it had ordered in 2005.

At the moment the airline has a domestic market share of close to 14 per cent. If this has to be improved upon the airline needs a clear roadmap which covers both short- medium- and long-term business strategies. It also needs to take a fresh look at its international and domestic routes and withdraw from those on which it is bleeding. At the same time it should also not shy away from seeking a premium on popular and money making routes like India-San Francisco.

Simplistic though it sounds the airline also needs to take a serious look at wooing back flyers through enhanced promotional activities like re-emphasising that it is the only full service airline which offers the highest free baggage allowance.

All these steps are not new. But one hopes that this time the government will pay heed and take them forward.

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