Air India: The National Carrier Near to Privatization

Abstract

The transport sector plays a vital role in the growth and development of an economy. The competition has been increased in Indian civil aviation sector after the entry of LCCs. The open sky policy allowed the private carriers to fly in the sky. Before this amendment, the two carriers Air India and Indian Airlines captured the market. An attempt has been made with the help of this study for the evaluation of financial performance of Air India. The study period ranged from 2007 to 2017. The data has been collected for revenue, total expenditure, net profit and power and fuel expenditure with the help of Capitaline Database, India Today and Annual Reports of Air India and compiled in the form of Chart, Graph and Tables. The analysis has been made with the help of various statistical tools like descriptive statistics i.e. highest and lowest range, mean, standard deviation and co-efficient of variation and persons correlation. The study found that Air India is no more profitable, though its net losses have been deceased in the last few years, but it is in debt trap too. The present study suggested some measures for the revitalization of Air India like disinvestment and privatization.