The 76% stake in Air India will be in the hands of Private sector soon, but this is not the first time a national carrier has gone private. Last year Pakistan government approved to sell stakes in Pakistan International Airlines., and UK Government did it in 1987, by selling British Airways to private sector. Many airlines including Qantas followed the British Airways model and let the shares float in the stock markets.
Japan Airlines and British Airways went 100% into to private hands, but many airlines like Turkish Airlines, SAS, Air France-KLM and many more went sold more than 50% to private investors.
Not that all privatised Airlines are doing well, but it has reduced the burden on Tax payers who always bail out the loss making fully government owned airlines.
In contrary to other Airlines, Japan Airlines was originally privatised in 1987, but bailed it out following the airline’s 2010 bankruptcy., then the Government listed in again in 2011 and recouped the bailout cost.
The records show that many fully government owned airlines have been reporting losses year after year in recent times due to heavy competition they face from private Airlines, and the governments step into bail them out.
Though there are no standard business model for all airlines, privatisation put pressure on the management to show profit to keep flying..