Lok Sabha Question No. 87 (STARRED), answered on 2019-06-27
Subject: Disinvestment of Air India
Ministry: CIVIL AVIATION
Asked by: Anto  Antony

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA

STARRED QUESTION NO. : 87 (To be answered on the 27th June 2019)

## DISINVESTMENT OF AIR INDIA

*87.

SHRI ANTO ANTONY

## Will the Minister of CIVIL AVIA TION

be pleased to state:-

- (a) whether the Government intends to disinvest Air India and its subsidiaries and if s0, the details thereof and the reasons therefor;
- (c) whether the Government has taken any steps to improve Air India's operations and financial performance; and
- (b) the present stage of disinvestment and the steps taken by the Government in this regard;
- (a) if $0, the details thereof including the financial assistance given to Air on the financial health of Air India ?

## ANSWER

Minister of State (IC) in the Ministry of CIVIL AVIATION

(Shri Hardeep Singh Puri)

(a) to (d): A statement is laid on the table of the House.

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27.06.2019 regarding 'Disinvestment of Air India tabled for Antony, MP. by Shri Anto

- (a) e(b): NPTI Aayog in its recommendations, on Strategic the Central Public Sector Enterprises in 12, 2017 had Disinvestment of for the disinvestment of Air India and has referred given the rationale the company, among various other to the fragile finances of continuous losses andhas reasons. Air India has been incurring competitive aviation further financial support in a mature and market would not be the best use of scarce financial resources of the Government May huge

28.06.2017, had given an in-Principle approval for considering on disinvestment of Rir India andits five subsidiaries CCEO strategic India Specific Alternative Mechanism constituted an Air strategic disinvestment from time (AISAM) to guide the process on include to time and decide issues which, inter-alia, treatment of unsustainable debt of Air India, off of certain subsidiaries, the quantum bidders. hiving making

The Preliminary Information Memorandum (PIM) for was issued its 2018. No Eol/ bid was received till the last date on March, 31/05/2018 The Government remains of receipt of bids i.e India: In this regard; the Air India committed to the disinvestment of Air has decided as follows: Specific Alternative Mechanism (AISAM) inviting

In view of volatile crude prices and adverse fluctuations in present environment is not conducive to stimulate exchange rates, the would be revisited once global near future. The issue forex conditions stabilize economic indicators including oil prices and

AISAM inter-alia, approved the contours for sale of subsidiaries Interest (EOD for the Disinvestment of Air Indio Air Expression of Limited was issued on 12th February, 2019. Transport Services has,

- (c) & (d): Government has prepared a revival plan for Air India includes a comprehensive financial which focuses on the operational package The revival plan of Air India or cost The Revival Plan, inter-alia, comprises severae

## major elements including:

- @Hlegher tievels %f operational efficiency by strengthening management and implementing best practice business processes
- (ii) Differentiated business strategies for each Air India'$ core businesses
- eiRobust organizational and governance reforms to be implemented eminent Board by an
- and

Theidetails of the funds infused into Air India by the Government profitlloss earned by Air India during the last 5 and years are as under 8

- (v) Sale of non-core real estate assets and strategic disinvestment subsidiaries such as Air India Air Transport Services Ltd. of (AIATSL):

| Year    |   Amount (Rs in Crore) | Profitl(Loss) (Rs. in Crore)   |
|---------|------------------------|--------------------------------|
| 2014-15 |                5780    | (5859.91)                      |
| 2015-16 |                3300    | (3836.78)                      |
| 2016-17 |                2465.21 | (6452.59)                      |
| 2017-18 |                1800    | (5348.18)                      |
| 2018-19 |                3975    | (7635.46) (Prov:)              |

The continued support from the Govt has resulted into financial as well as operational performance Of the improvements in the audited accounts of FY 2017-18 of Air India company. As per the last as per Indian Accounts Standard from Rs: 6452.90 crore in 2016-17 to Rs. 5348.17 crore

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