Lok Sabha Question No. 1825 (UNSTARRED), answered on 2017-12-28
Subject: Loans on Air India
Ministry: CIVIL AVIATION
Asked by: KUNWAR PUSHPENDRA SINGH CHANDEL, M. UDHAYAKUMAR, RAMESH POKHRIYAL NISHANK, BANSHILAL MAHTO, NAGARAJAN P., LAKHAN LAL SAHU, R. VANAROJA, ADVOCATE NARENDRA KESHAV SAWAIKAR

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA UNSTARRED QUESTION NO. : 1825 (To be answered on the 28th December 2017)

## Loans on Air India

1825.

SHRI KUNWAR PUSHPENDRA SINGH CHANDEL

ADV. M: UDHAYAKUMAR

DR RAMESH POKHRIYAL "NISHANK"

DR. BANSHILAL MAHATO

SHRI P. NAGARAJAN

SHRI LAKHAN LAL SAHU

SHRIMATI VANAROJA R

ADV. NARENDRA KESHAV SAWAIKAR

Will the Minister of CIVIL AVIATION

`

be pleased to state:-

- () whether it has been revealed that Air India has suffered huge losses due to the misuse of its resources, if SO, the details thereof;
- () whether ever staffing in Air India is affecting its efficiency and profit and if s0, the taken to tackle this issue; steps
- (b) whether the former ex-officers of Air India were grossly neglected in foreign deployment; if s0, the detaiis thereof;
- (d) whether the Air India has sought huge amount of loan to meet its variediate capital requirements and if s0,the details thereof indiceting various loans on Air India as on date;
- (f) the other` steps taken/being taken the Government for revival/turnaround of Air India and clear its huge debt burden? by
- (e) whether some private airlines have expressed their   interest to operate International flights of Air India, if so, the details thereof; and

## ANSWER

Minister of State in the Ministry of CIVIL AVIATION

- (2): Air India has been making losses since merger for various reasons, The major reasons for the losses are as follows:
- ii. Increase in competition especially from low cost carriers
- High interest burden
- iii. High Airport User Charges
- IndiberRiizee Bilaterals to Foreign Carriers leading to excess capacity in the V. market:
- variation due to weakening of the iv. Adverse impact of exchange rate

The details of the Net Losses made by Air India during the last three years and current year are as follows:

2013-14

(6279.60)

2014-15

(5859.91)

2015-16

(3836.77)

2016-17(Prov:) (3643.00)

Year Net Profit/ (Loss) (Rs: in crore) `

- (b): No Sir. Air India has in foreign posting policy and a combined seniority list of officers All postings have been done as per the foreign posting policy: place
- (c): There has been a ban on Direct Recruitment in Air India for nonoperational categories of employees:

There is significant reduction in the manpower due to retirement on voluntary retirements etc. The total number %f regular employees of Air India as on November; 2017 is approximately 14006, as the total manpower of approximately 32600 at the time of merger in August 2007. against

- (d): The total outstanding\_loans on Air India as on 30.09.2017 (Provisional) is Rs. 51,890 crore; the details of which are as follows:

'

i.

Aircraft Loans Rs.18,364 crore

ii. Working Capital Loans Rs.33,526 crore

Total Rs.51,890 crore

- (e): M/s Interglobe Aviation Limited have shown interest in acquiring the airline operation of Air India and Air India Express.
- (f): Government had approved Turnaround Plan (TAP) Financial Restructuring Plan (FRP) for operational and financial turnaround of Air crore 2021 subject to achievement of certain milestones as Iaid down in the TAPIFRP: The Company has made substantia] progress in both Operational as well as upto

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