Air India: Legacy of an 86-year old Maharajah

NEW DELHI: It was last summer -- June 28, 2017 to be precise -- when the Union Cabinet gave the 'in-principle nod' to divest the government's stake in the India's national carrier Air India. A gestation period of exactly nine months later, the plan attained fruition when on Wednesday, the government offered to sell 76 per cent stake in AI to private bidders.

THE BIRTH OF A 'MAHARAJAH'

Air India's roots trace back to the year 1932- the year when India played its first test match even as the national hockey team grabbed yet another Olympic gold at Los Angeles. The year also witnessed Mahatma Gandhi giving a clarion call to relaunch the Civil Disobedience movement and amid the turmoil, Tata Sons patriarch, JRD Tata founded the country's first scheduled airline- Tata Airlines. JRD, who in 1929 became the first Indian licensed pilot, himself flew the first flight between Karachi and Mumbai (then Bombay). In 1946,

Tata Airlines

became a public limited company under the name of Air India. The same year, the iconic Maharajah mascot made its first appearance when when Bobby Kooka, Air India's Commercial Director and Umesh Rao, an artist with advertising agency J.Walter Thompson, together created the Maharajah. A few years later in 1953, under the Air Corporation Act, the government nationalised all existing airline assets.

FROM A KING TO 'A BEGGAR'

In an exclusive interview to TOI, Union minister of state for civil aviation

Jayant Sinha

said that the previous Congress-led UPA government had "reduced Maharajah to a beggar", making a reference to the carrier's debt burden of Rs 50,000 crore. While Sinha's comment makes for fine articulation, it would be a stretch to lay the blame squarely on the UPA government. The story of burgeoning debt and the bid to privatise Air India dates back to almost two decades ago. The idea was first conceived in 2000 when the Atal Behari Vajpayee-led NDA government decided to sell 51 per cent of equity of the erstwhile domestic airline Indian Airlines, with 26 per cent stake to a strategic partner. It also decided to allow disinvestment of 60 per cent of Air India, which was running international operations, with 26 per cent foreign entity stake. The move however was stalled by the then civil aviation minister Sharad Yadav of coalition partner Janata Dal (United). On his part, Jayant Sinha might put up the rebuttal that in 2012, the UPA government, in its second stint at the centre, ruled out privatisation of Air India and approved the infusion of Rs 30,000 crore in Air India till 2021.

Read Jayant Sinha's full interview here

In a deja vu of sorts, the latest bid to sell Air India too has run into criticism from the opposition and trade union bodies. But a government keen on economic reforms and free of coalition pulls and pressures means that the deal is likely to sail through this time-- provided it finds buyers. The successful bidder is expected to emerge by September-end.

THE MAHARAJAH'S LEGACY

Bobby Kooka, on conceiving the Maharajah mascot said, "He may look like royalty, but he isn't royal." The line quite aptly captures Air India's genesis- an infant independent India's idea aimed at literally touching heights, despite staying rooted to a socialist agenda of state-owned entities. On what the government will do to retain Air India's identity, Jayant Sinha said, "The brand name Air India will have to be retained...We have ensured AI has an independent existence for at least three years and that it remains a domestic airline with the substantial ownership and control with Indians". He further said that the government will create AI Asset Holding company, which will have non-core real estate and art collection of AI, among other things. The art and artefacts, which the airline has collected over the years will be handed over to the ministry of culture which will, in turn, give them to museums.

As for potential bidders, the Air India saga might come a full circle with Tata Sons-Singapore Airlines having expressing interest earlier. If that deal comes through it would be a homecoming for the Maharajah. IndiGo and an unidentified foreign player are also in the fray. Jet Airways is also reportedly waiting for the bid documents to decide on its next move while

Qatar Airways

too, wants to start an airline in India.








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