New bid to find buyer for Air India slammed as ‘selling family silver’

An Air India Airbus A320neo plane takes off in Colomiers near Toulouse, France. (Reuters)
Updated 28 January 2020
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New bid to find buyer for Air India slammed as ‘selling family silver’

  • Indian government aims to offload entire stake in debt-ridden national carrier after failed 2018 sale attempt
  • Critics blame country’s struggling economy for decision to sell airline

NEW DELHI: Renewed government attempts to find a buyer for “debt trap” national carrier, Air India, have been slammed as “selling the family silver.”

Politicians from opposition and pro-government parties condemned the move by the Indian government to offload its entire stake in the flag-carrier airline, which comes more than a year after a failed bid to sell a controlling share.

A document released on Monday said that any bidder would have to absorb around $3.3 billion of debt along with other liabilities.

Speaking in New Delhi on Tuesday, Kapil Sibal, senior leader of India’s main opposition party, the Indian National Congress, said: “When governments don’t have money this is what they do.

“The government of India has no money; growth is less than 5 percent and millions of rupees are outstanding under several social schemes. This is what they will do, sell all the valuable assets we have.”

Derek O’Brien of the Trinamool Congress, the regional party ruling West Bengal, said in a video statement that “the government has decided to sell more family silver by selling 100 percent stake in Air India. You can well imagine how bad the economy (is).”

And on Twitter, Subramanian Swamy, parliamentarian from the ruling Bharatiya Janata Party (BJP), said: “This deal is wholly anti-national, and I will (be) forced to go to court. We cannot sell our family silver.”

Monday’s document gave the deadline for submission of initial expressions of interest in purchasing the airline as March 17. In 2018, the Indian government tried to sell 76 percent of the carrier but got no takers.

To justify the latest sale attempt, Aviation Minister Hardeep Singh Puri, said: “Despite infusing 30,500 crore rupees ($4.3 billion) in AI (Air India) since 2012, the airline has been running into losses year after year. Due to its accumulated debt of about 60,000 crore rupees, its financial position is very fragile.”

He described the company as being in a “debt trap” but added that it could be saved through privatization. “We have learnt lessons from the 2018 bid.”

Referring to critical comments from fellow BJP members, the minister said they were expressing their “personal opinion.”

Jitender Bhargava, former executive director of corporate communication at Air India, said the current offer would attract potential buyers.

“India is a growth market, so anybody would like to be part of it and take the advantage. The acquisition of Air India provides the fastest way to become a global carrier,” he told Arab News.

According to Bhargava, the move had nothing to do with the current state of the Indian economy. “All the important international carriers want to expand their footprints in India because of the potential of the Indian market. The government has taken a pragmatic view on the sale of the national carrier,” he said.

“Ownership of the airline does not matter, leadership matters. Once it came into the hands of the government, bureaucracy killed it,” added Bhargava, who authored “The Descent of Air India” chronicling the airline’s downfall. “Air India under the government’s ownership cannot run, cannot survive.”

He predicted that the carrier would become a marginal player if there was no change in ownership.

Air India has a fleet of 146 aircraft and employs around 21,000 people. It was founded by prominent industrialist J.R.D. Tata in 1932 and nationalized in 1953.


US says Mexican cartel drones breached Texas airspace

Updated 4 sec ago
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US says Mexican cartel drones breached Texas airspace

  • Drone breach comes some five months into a US military campaign targeting alleged drug-smuggling boats
  • US media also reported that the El Paso airspace closure may have been caused by the US military

HOUSTON: The Trump administration said Wednesday that Mexican cartel drones caused the temporary closure of a Texas airport, but some Democratic lawmakers pushed back, suggesting US military activity was responsible for the disruptive shutdown.
The report of the drone breach comes some five months into a US military campaign targeting alleged drug-smuggling boats, and could provide a pretext for President Donald Trump to follow through on his threats to expand the strikes to land.
Trump has specifically threatened to attack cartels inside Mexico, which said it had “no information” on drones at the border.
The US Federal Aviation Administration (FAA) said late Tuesday the airspace over the Texas border city of El Paso would be shut to all aircraft for 10 days, citing unspecified national “security reasons,” only to lift the closure after less than 24 hours.
Transportation Secretary Sean Duffy said in a post on X that the FAA and the Defense Department “acted swiftly to address a cartel drone incursion,” adding: “The threat has been neutralized, and there is no danger to commercial travel in the region.”
A US administration official meanwhile said the breach was by “Mexican cartel drones,” and that US forces “took action to disable the drones,” without providing specifics.
But Democratic Representative Veronica Escobar, whose district includes El Paso, questioned the Trump administration’s explanation, saying it was “not what we in Congress have been told.”
“The information coming from the administration does not add up and it’s not the information that I was able to gather overnight and this morning,” Escobar told journalists.
And top Democratic lawmakers from the House Committee on Transportation suggested the Pentagon may have been responsible for the situation, saying defense policy legislation allows the US military to “act recklessly in the public airspace.”
The lawmakers called for a solution that ensures “the Department of Defense will not jeopardize safety and disrupt the freedom to travel.”

- War against ‘narco-terrorists’ -

US media also reported that the El Paso airspace closure may have been caused by the US military, with CNN saying the shutdown was the result of Pentagon plans to use a counter-drone laser without coordinating with the FAA.
The Pentagon referred questions on the closure to the FAA, which said when it announced the move that “no pilots may operate an aircraft in the areas” covered by the restrictions and warned of potentially “deadly force” if aircraft were deemed a threat.
It updated its guidance Wednesday morning, saying on X that the closure was lifted.
Trump’s administration insists it is effectively at war with “narco-terrorists,” carrying out strikes on alleged traffickers in the Caribbean and eastern Pacific, while the US president has repeatedly said he plans to expand the strikes to land.
Mexican President Claudia Sheinbaum opposes US military intervention in her country but has so far managed to negotiate a fine diplomatic line with Trump.
She has stepped up extradition of cartel leaders to the United States and reinforced border cooperation amid tariff threats from Trump, for whom curbing illegal migration from Mexico was a key election promise.
Sheinbaum told a news conference Wednesday that she had “no information on the use of drones at the border,” but that her government was investigating.
The United States began carrying out strikes on alleged drug-trafficking boats in September, a campaign that has killed at least 130 people and destroyed dozens of vessels in the Caribbean Sea and eastern Pacific Ocean.
US officials have not provided definitive evidence that the vessels are involved in drug trafficking, prompting heated debate about the legality of the operations, which experts say amount to extrajudicial killings.
Trump also ordered a shocking special forces raid in Caracas at the beginning of January to capture Venezuelan leader Nicolas Maduro, whom Washington accused of leading a drug cartel.