The Indian government faces a dilemma over whether to turn beleaguered Air India over to a private entity or allow the relic of state ownership to limp along in its zombie state. Privatization could be the only way to save Air India, says Civil Aviation Minister Ajit Singh. A pilot strike that held the government hostage for two months and bled the already cash-strapped airline of nearly 6 billion rupees ($110 million) finally reached resolution July 4. During the strike, the civil aviation ministry seriously considered divesting Air India.
A nearly two-month strike by Air India’s pilots has ended after the airline assured them it will “sympathetically consider” their concerns about assigning pilots to the carrier’s Boeing 787 fleet and the reinstatement of some 100 pilots fired during the work action. “The strike has been called off with immediate effect. The striking pilots will report to work within 48 hours from July 3 by submitting a joining report,” an Air India lawyer tells Aviation Week. “The flight duties will be assigned thereafter,” he adds.
