Should governments be in the airline business?

Friday, 17 May 2024 00:10 - - {{hitsCtrl.values.hits}}

India privatised Air India, while PIA (Pakistan) is bleeding and looking to privatise. There’s no logic in holding on to a national carrier at a loss unless you can afford it (e.g., Royal Brunei Airlines).
On the other hand, Singapore Airlines, Emirates, and Qatar Airways are all state-owned, but through different ownership/management structures.
State-owned Ethiopian Airlines is Africa’s largest airline with a fleet of 113 aircraft, generating a topline of $ 5 billion and a bottom-line of $ 935 million, with a market valuation of $ 14 billion.
Instead of following a blanket economic mantra, consider country-specific circumstances to make a highly contextualised decision
Remember: Sri Lanka’s aerospace location is as strategic as Dubai or Singapore. So, it’s not just the airline that will be sold!
Also, don’t let the airline’s debt burden trigger a ‘garage’ sale. Think strategically – even if the decision is to privatise, PPP or an alliance.

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