Lok Sabha Question No. 1038 (UNSTARRED), answered on 2018-02-08
Subject: Debt/Loan on Air India
Ministry: CIVIL AVIATION
Asked by: MIDHUN REDDY, KULAMANI SAMAL, ADVOCATE NARENDRA KESHAV SAWAIKAR, ELUMALAI VELLAIGOUNDER, PONNUSAMY VENUGOPAL

1038.

GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA 1038 (To be answered on the February 2018) 8th

## DEBTILOAN ON ARR INDIA

SHRI P.V. MIDHUN REDDY DR KULAMANI SAMAL ADV NARENDRA KESHAV SAWAIKAR SHRI V. ELUMALAI DR P VENUGOPAL

Will the Minister of CIVIL AVIATION

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be pleased to state:-

- (a) whether the Government proposes to privatise Air India and if the details thereof; SO,
- (b) whether Air India had been operating inefficiently and was unable to compete with private sector Airline operators and if s0, the details thereof;
- (c) the details of loans sought by Air India during the last three years and the outstanding amount of these loans as on date;
- (d) whether the Government owned Air India is saddled with huge debt burden and if SO, the details thereof;
- (e) whether huge funds were injected by the Government to bail out the flagship carrier and if the details thereof together with the reasons for failure on the of Air India; and part SO,
- (f) the various measures taken the Government for revival of Air India? by

## ANSWER

Minister of State in the Ministry of CIVIL AVIATION

(Shri Jayant Sin; a'

(a): The Cabinet Committee o Economic Affairs (CCEA), in its meeting held on 28.06.2017 has given in-principle approval for considering strategic disinvestment of Air India and its five subsidiaries and constitution of Air India Specific Alternative Mechanism (AISAM) to the process of strategic disinvestment from time to time. guide

- (b): Air India has been consistently improving its overall financial and operational performance since the implementation of the Turnaround Plan by the Government: The details of the Net Losses and Operating Profitl (Loss) made by Air India from FY 2013-14 to FY 2016-17 are as follows:

(3977.89) .~.

| Year    |   Net Loss Rs. in (crore) | Operating Profitl(Loss) Rs. in (crore)   |
|---------|---------------------------|------------------------------------------|
| 2013-14 |                   6279.6  |                                          |
| 2014-15 |                   5859.91 | (2636.19)                                |
| 2015-16 |                   3836.77 | 105.00                                   |
| 2016-17 |                   5765.16 | 298.03                                   |

- (c) & (d): The details of the total debt of Air India for the last three years is available at Annexure.
- (e) & (f): Government had approved 4 Turnaround Plan (TAP)Financial Restructuring Plan (FRP) for operational and financial turnaround 0f Air India: The TAPIFRP provides equity infusion of Rs.30231 crore upto 2021 subject to achievement of certain milestones as laid down in the TAPIFRP. Detail of Equity infused in Air India from the FY 2011-12 to till date are as follows:

6000'

26345.21``

| Year                | Equity Infused Rs. in (crore)   |
|---------------------|---------------------------------|
| 2011-12             | 1200                            |
| 2012-13             | 6000                            |
| 2013-14             |                                 |
| 2014-15             | 5780                            |
| 2015-16             | 2500                            |
| 2016-17             | 1713                            |
| 2017-18 (till date) | 1800                            |
| Tolal               |                                 |

As a part of the Turnaround Strategy for Air India Limited, the Company, with overall support of the Government; has initiated a number of steps in order to cut costs and iosses. These steps, inter-alia, inciude the foffowing

- ii) Rationalisation of certain loss making routes
- j) Route rationalisation of erstwhile AI I& IA routes and elimination of route network involving parallel operations
- iii) Enhanced utilisation of new fleet resulting in production of higher Available Seat Kilometers (ASKMs):

.

## The details of the total debt of Air India for the last three years

|         |                |                       | (Rsin Crores)   |
|---------|----------------|-----------------------|-----------------|
| Year    | Aircraft Loans | Working Capital Loans | Total Loans     |
| 2016-17 | 17359.61       | 31087.76              | 48447.37        |
| 2015-16 |                |                       | 52817.02        |
|         | 22203.52       | 30613.50              |                 |
|         |                | 28792.99              | 51367.08        |
|         | 22574.09       |                       |                 |
| 2014-15 |                |                       |                 |

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