Reading Comprehension – Test 169

Read the following passage carefully and choose the most appropriate answer to the questions out of five alternatives. <br><br> Air India's plummeting fortunes are the outcome of government's incompetence in running a business. Government shouldn't be in business as when it does so, tax payers pay the price. To illustrate, Air India has recorded a net loss in the last four years which put together total Rs 23,273 crore. Even as losses increased debt grew, reaching Rs 58,352 crore at the end of 2018-19. This poor performance is underwritten by tax payers as government infused Rs 11,540 crore to support the struggling airline. In a macroeconomic context characterised by fiscal constraints, supporting Air India is indefensible.<br><br> The way out is privatisation. One hurdle in finding buyers is the unattractive terms on offer. Air India's debt acts as an obstacle. One good step taken by government after the last exercise failed was to create a special purpose vehicle (SPV) named Air India Assets Holding Limited to take some debt off the airline's books. In July, aviation minister Hardeep Singh Puri informed Lok Sabha that Rs 29,464 crore of debt had been transferred from the airline to the SPV. Going forward, government is expected to consult potential bidders prior to the formal launch of the privatisation exercise. This is a sensible step as it will improve the probability of success. <br><br> Air India's sale should not be viewed as a one-off exercise. It should herald a policy approach where government's presence in a commercial operation is eschewed. There are many areas where the state has a productive role to play, but its presence is inadequate on account of budget constraints. Privatisation will help realign the role of the state and fill gaps. Air India's privatisation is overdue.

Why should government not run Air India?

Read the following passage carefully and choose the most appropriate answer to the questions out of five alternatives. <br><br> Air India's plummeting fortunes are the outcome of government's incompetence in running a business. Government shouldn't be in business as when it does so, tax payers pay the price. To illustrate, Air India has recorded a net loss in the last four years which put together total Rs 23,273 crore. Even as losses increased debt grew, reaching Rs 58,352 crore at the end of 2018-19. This poor performance is underwritten by tax payers as government infused Rs 11,540 crore to support the struggling airline. In a macroeconomic context characterised by fiscal constraints, supporting Air India is indefensible.<br><br> The way out is privatisation. One hurdle in finding buyers is the unattractive terms on offer. Air India's debt acts as an obstacle. One good step taken by government after the last exercise failed was to create a special purpose vehicle (SPV) named Air India Assets Holding Limited to take some debt off the airline's books. In July, aviation minister Hardeep Singh Puri informed Lok Sabha that Rs 29,464 crore of debt had been transferred from the airline to the SPV. Going forward, government is expected to consult potential bidders prior to the formal launch of the privatisation exercise. This is a sensible step as it will improve the probability of success. <br><br> Air India's sale should not be viewed as a one-off exercise. It should herald a policy approach where government's presence in a commercial operation is eschewed. There are many areas where the state has a productive role to play, but its presence is inadequate on account of budget constraints. Privatisation will help realign the role of the state and fill gaps. Air India's privatisation is overdue.

How can the government resolve the problem of Air India?

Read the following passage carefully and choose the most appropriate answer to the questions out of five alternatives. <br><br> Air India's plummeting fortunes are the outcome of government's incompetence in running a business. Government shouldn't be in business as when it does so, tax payers pay the price. To illustrate, Air India has recorded a net loss in the last four years which put together total Rs 23,273 crore. Even as losses increased debt grew, reaching Rs 58,352 crore at the end of 2018-19. This poor performance is underwritten by tax payers as government infused Rs 11,540 crore to support the struggling airline. In a macroeconomic context characterised by fiscal constraints, supporting Air India is indefensible.<br><br> The way out is privatisation. One hurdle in finding buyers is the unattractive terms on offer. Air India's debt acts as an obstacle. One good step taken by government after the last exercise failed was to create a special purpose vehicle (SPV) named Air India Assets Holding Limited to take some debt off the airline's books. In July, aviation minister Hardeep Singh Puri informed Lok Sabha that Rs 29,464 crore of debt had been transferred from the airline to the SPV. Going forward, government is expected to consult potential bidders prior to the formal launch of the privatisation exercise. This is a sensible step as it will improve the probability of success. <br><br> Air India's sale should not be viewed as a one-off exercise. It should herald a policy approach where government's presence in a commercial operation is eschewed. There are many areas where the state has a productive role to play, but its presence is inadequate on account of budget constraints. Privatisation will help realign the role of the state and fill gaps. Air India's privatisation is overdue.

What was the primary purpose of creating Air India Assets Holding Limited?