An analysis of Air India’s financials reveals that the national carrier is on the path to profitability. Strategic disinvestment at this time will prove to be suboptimal. It is shown that debt obligations of the carrier can be serviced, given its improving performance. The airline’s revenues also entail large amounts of foreign exchange inflows. With global crude oil prices expected to remain subdued, strategic disinvestment of Air India at this juncture is not desirable.
