It will be a futile exercise by the government to meet the demands of Air India for an equity infusion of Rs 5000 crs unless AI completely restructure itself. It has enormous problems in its current organization structure which leads to a business models whereby it kills itself. It has massive workforce which needs to be trimmed,the PLI needs to cut down drastically, route raionalization need to take place and the most important the privilege passage given to the employee should be charged at least 50% of the actual fare. There are lot of areas where the fraud is done by the employee within AI which eats up its profitability. An equity infusion of this magnitude at the cost of tax payers money goes in the pockets of AI employee. Therefore the government should think twice before equity infusion as it had done in the past but still the story is same. The Royal Maharajah is still having a begging bowl at his disposal.
