Lok Sabha Question No. 1566 (UNSTARRED), answered on 2017-03-09
Subject: Financial Performance of Air India
Ministry: CIVIL AVIATION
Asked by: R. VANAROJA, GOPALAKRISHNAN CHINNARAJ, SAUGATA ROY, M. CHANDRAKASI, P. KUMAR, SUSHIL KUMAR SINGH

GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA UNSTARRED QUESTION NO. 8 1566 (To be answered on the March 2017) gth

## FINANCIAL PERFORMANCE OF AIR INDIA

1566.

SHRIMATI VANAROJA R: DR C. GOPALAKRISHNAN PROF SAUGATA ROY SHRI M: CHANDRAKASI SHRI P. KUMAR SHRI SUSHIL KUMAR SINGH

Will the Minister of CIVIL AVIATION

be pleased to state:-

- (a) whether the Union Government is considering inducting banks &s strategic investors in Air India, if s0, the details thereof;
- (C) the asset value of Air India as on date and the loss incurred by it during the last three years; year-wise;
- (6) ehether the Union Government is considering privatization of Air India and if SO, the details thereof;
- (d) the steps taken to cut losses and make & tura-around in the financial performance of Air India;
- (f) whether the Committee/ Government has reviewed tke overall performance of Air India and if the details and tke outcomne thereof along with the achievements of Air India during the last three years, year-wise; and (g) whether the Directorate General Of Zivil Aviation and other concerned India and if $0, the details thereof?
- (e) whether the Government has set up an progress 0f Air India in respect 0f achievemeats 0f the milestones set by the Government for release of equity under turnaround plan; if $0, the details thereof;

## ANSWER

Minister of State in the Ministry of CIVIL AVIATION

(Shri Jayant Sinha)

(c): The total Gross Assets Block and the Net Loss of Air India as per the audited accounts of the last three years are given at Annexure A\_

(d): entity, Air India Limited suffered huge losses for the years 2007-08 to 2010-11. Govt. took cognizance of the deteriorating financial position 0f Air India and directed it to come up with a Turn Around Plan (TAP) with the aim of improving the operational and financial performance of the company: Government had approved Turnaround Plan (TAP) Financial Restructuring Plan (FRP) for operational and financial turnaround of Air India. The TAPIFRP provides equity infusion of Rs.30231 crores upto 2021 subject to achievement of certain milestones as laid down in the TAP/FRP The Company has made substantial progress in both Operational as well as Financial Areas as per TAP milestones: As a part of the Turnaround Strategy for Air India Ltd,) the company with the overall support of the Govt: has initiated a number of steps in order to cut costs and losses.

(e): An Oversight Committee has beea set up under the Chairmanship of Secretary, Ministry of Civil Aviation with Expenditure Secretary; Additional Secretary and Financial Adviser, Ministry of Civil Aviation, Joint Secretary Ministry of Civil Aviation and State Bank of India (SBI) Caps &S members, to monitor the Operational and Financial Performance of Air India vis-a-vis the milestones set; Regular meetings of the Oversight Committee are held every three months. So sixteen meetings of Oversight Committee have been held. Till date equity of Rs. 24723.74 crores has been infused by the Government into Air India. far ,

(f): Yes, Madam. Air India has been constantly improving its overall operational and financial performance. The company has posted an Operating Profit of Rs 105 crores in FY 2015-16 thus advancing the TAP targets by two years. The details of operational and financial performance during the last three years year wise is attached as Annexure B.

(g): Madam. Directorate General of Civil Aviation (DGCA) has cancelled the license of Capt. Ajay Khadtale ATPL No. 3619 on 04.01.2016. Yes;

<!-- image -->

## (Rs in Crores)

| Parriculars                  | 2013-14   | 2014.15   | 2615     |
|------------------------------|-----------|-----------|----------|
| Gross Block of Assets        | 41746.84  | 43237.65  | 39796.93 |
| Net Profit/ (Loss) after Tax | {6279.50) | (5859.91) |          |

## AIR INDIA LIMITED Financial & Operational Highlights

| Sr. No:   | Head                               | 2013-14 Actual   | 2014-15 Actual   | 2015-16 Actual   |
|-----------|------------------------------------|------------------|------------------|------------------|
|           | Operating Revenue                  | 18370.96         | 19801.71         | 19992.33         |
| 2         | Operating Expenses                 | 22348.85         | 22437.89         | 19887.33         |
| 3         | Operating Profitl(Loss)            | (3977.89)        | (2636.18)        | 105.00           |
| 4         | Total Revenue                      | 20140.59         | 20606.27         | 20524.56         |
| 5         | Totai Expenses                     | 26420.19         |                  | 24361.33         |
| 6         | Net Profitl (Loss) after Tax       | (6279.60)        | (5859.90)        | (3836.77)        |
| 7         | EBIDTA                             | 256.21           | 337.78           | 2413.29          |
|           | Passenger Revenue                  | 14150.73         | 15793.36         | 15656.25         |
| 9         | Freight Revenue                    | 1142.32          | 1155.03          | 1054.54          |
| 10        | Staff Cost                         | 3152.19          | 2466.64          | 2345.51          |
| 11        | ATF Expenses                       | 9440.71          | 8449.14          | 5845.40          |
| 12        | Passenger Load Factor (%)          | 73.3             | 73.7             | 75.6             |
| 13        | No. of Revenue Passengers Million) | 15.43            | 16.88            | 18.00            |
| 14        | Yield Per RPKM Rs:)                | 4.25             | 4.39             | 4.05             |

<!-- image -->

Rs\_In Crores)