13. Directions (Q. Nos. 66-70) Read the following passage
carefully and answer the questions that follow.
Government of India decision to allow 49% foreign
airline equity in Air India is good news. The rules were
changed last year permitting 100% foreign equity in
Indian carriers, restricting foreign airlines holding to
49% excluding Air India. The move will attract better
valuation for the national carrier. The news that the Tatas
have shown interest to bid for Air India, along with
Singapore Airlines, after the Union Cabinet amended the
rules has spread cheer. It is only befitting that the once
great airline, now decrepit, goes back into the hands of
the business house that founded and nurtured it in its
formative years. Government of India can snatch any
jewel from anyone and appropriate it as it did when it
nationalised (and renamed) Tata Airlines. But it can't
unilaterally hand Air India back to the Tatas for a
negotiated-price. The latter will have to participate in a
bid to earn back what was essentially theirs. Although,
JRD Tata transformed the Tatas into a globally respected
corporate house, was respected as a
visionary business
leader and revered for his humanitarian work, he was
best known as an intrepid aviator, who built a great and
endearing airline with a huge national and international
network.
During his reign, working for Air India was the most
coveted job in India, coming as it did with glamour and
prestige. Though jaded, Air India, however, is a
much-loved brand, evoking fond nostalgia. If the
government plays its cards well and acts with prudence
and transparency, it can still unlock the airline's true value
and potential and realise good returns. The Tatas have the
vision, leadership depth, management skills and
wherewithal, backed by a war chest and capacity to raise
that kind of capital. It can heartily compete with global
giants like Emirates, Etihad or British Airways.
The Tatas also have the global exposure, appetite and
stomach for that kind of entrepreneurial risk. And with
Ratan Tata back at the helm another aviator passionate
about the airlines, the stars may be aligned to bring Air
India back into the family. And if they do succeed, it will
be good for the airlines, its employees and consumers.
The government can expiate its past sins and redeem
itself, while reaping good value, aided by the prudent
policy change. That will be the crowning glory and a
fitting tribute to JRD, who can, at last, smile down from
the heavens.
67. It is evident from the passage that Air India
A. is up for an outright sale to the Tatas.
B. is open to collaborate with a foreign airline.
C. still commands a place in the hearts of the
people of India.
Codes