The central government recently declared its intention to privatize debt-ridden Air India (AI). Now, dealing with airline's debt of around Rs. 52,000 crore and its employee unions can prove to be the main hassles for the government while completing the long-winded process.

Arun Shourie and Jaitley wanted to get rid of AI back in 1999

Both Shourie and Jaitley had recommended disinvestment in Air India and Indian Airlines (before the merger) while holding Disinvestment portfolio during Atal Bihari Vajpayee's tenure as country's prime minister.

In fact, Arun Shourie was the one who got rid of certain assets from AI's subsidiary- Hotel Corporation of India. Later, after taking over the center in 2004, UPA's civil aviation minister Praful Patel (NCP leader) changed the airline's course and purchased additional planes as well as merged Air India and Indian Airlines. Patel's deals (aircraft purchase scam) are under CBI investigation.

Now, all eyes are on the government to see how the center deals with AI's debt and whether it would be offered as a part of the parcel to AI's buyer.

Reports suggest that the government may consider selling assets belonging to AI's subsidiaries like Hotel Corporation of India, Air India Transport Services, and Air India Engineering Services separately. Perhaps, the government might get rid of this white elephant by the next financial year. Air India may regain its lost glory once it is under private ownership, away from politicians and bureaucrats.

Two airlines operating in the country immediately showed their interest in acquiring the state-owned carrier.

IndiGo interested in international operations

IndiGo made it in the headlines when its President and Director-Aditya Ghosh declared that the airline has sent a letter to the government confirming their interest in Air India’s international operations.

Experts are on the wait and watch mode because the airline operates A320 family air crafts; while on the other hand, AI has jumbo aircraft like Boeing 777 and 787.

IndiGo holds 40 percent of India’s domestic airline market share at present.

IndiGo's interest in Air India's international operations does make sense. Air India along with Air India Express operates flights to 40 international destinations and holds 45 percent market share in the international market. On the other hand, IndiGo's international market share is lesser than 10 percent. Plus, AI also has code sharing agreements with several other global airlines.

Tata Group’s interest in the national airline does not sound bemusing as the airline was initially launched as Tata Airlines, back in 1932.

According to ET Now’s report published on June 21, Tata Group is interested in buying 51 percent stake in Air India. Representatives from the group had informal discussions with the government during the last week of June. The same report highlighted that Tata Group may join hands with Singapore Airlines to buy this stake. At present, both operate Vistara Airlines together.

Air India's own maintenance and repair center, land assets, and employee-to-aircraft ratio are some of its positive aspects.

AI’s domestic market share is between 13 to 14 percent and was tagged as world’s third worst performing airline in 2016. The airline recently attracted a lot of attention as it operated a flight without its AC in working condition in spite of passengers complaining about breathing issues. Airline’s rodent problem made it a laughing stock multiple times during 2015-16.