CRI听力:Debate as privatization of Air India is coming to sight

The privatisation of India's debt-laden airline is coming into sight, as the Indian government looks to sell off a stake in the loss-making carrier, seen as a burden to the county's finances.

Whoever buys the airline won't have an easy task on their hands - but analysts are confident that a successful turnaround is possible.

Our correspondent Rebecca Bundhun reports from Mumbai.

The privatisation of Air India is fast approaching.

The Indian government plans to sell off a 76 per cent stake in the debt-laden, loss-making carrier, which is burning through taxpayers' money. And the process for bidders to submit their interest closes at the end of this month.

It's seen as a bold move by the government

Jitender Bhagava, who was an executive director at Air India, believes that after privatisation the carrier could become a profitable company in the right hands.

"We all know the negatives of government ownership. Slow decision making, an uNPRofessional board, chairman who keeps getting changed every now and then. Unions having a major say in decision making when they shouldn't have in certain fields … If these negatives are removed after a professional management takes over, what are the kind of bonanza that the airline gets? Suddenly you'll find a dramatic improvement."

There are lot of high points to attract buyers. The airline flying to 70 locations in India and 40 international destinations, with more than 120 planes in its fleet.

And India has one of the world's fastest growing aviation markets, as more and more of the population take to the skies with domestic air traffic rising by about 18 per cent in January compared to a year earlier, according to the International Air Transport Association.

Satish Modh, who worked with Air India, including on formulating a turnaround plan for the airline, before becoming the director of the VES Institute of Management Studies and Research business school in Mumbai, is confident there will be a number of interested bidders.

"Everything is in place. There is a good network. Very good slots available across the country, across the globe. There are competent people in engineering, in all other sectors."

Not everyone is happy with the prospect of privatisation, though. Unions have protested amid concerns there could be job losses under a new owner to trim costs.

There's speculation that the conglomerate Tata could be one of the interested parties in taking over Air India. This would see the airline coming full circle. Air India was set up under then chairman JRD Tata in the 1930s before it was nationalised 20 years later.

But Indian budget airline IndiGo, which had earlier expressed interest, says it has dropped out of the race.

Former Air India executive director Jitender Bhargava remains optimistic.

"I am very, very positive that if Air India is run professionally like it was in the 1960s and the 70s when it was a great airline. Now all those negatives are removed. The positives are ushered in and you find great results coming in and Air India once again achieving the kind of glory it once commanded worldwide."

Air India could soar to new heights following privatisation.