Lok Sabha Question No. 828 (UNSTARRED), answered on 2016-07-21
Subject: Losses Suffered by Air India
Ministry: CIVIL AVIATION
Asked by: ADHIR RANJAN CHOWDHURY, M. CHANDRAKASI

828.

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA INSTARRED QUESTION NO\_ 828 (To be answered on the Z1st July 2016)

## LOSSES SUFFERED BY AIR INDIA

SHRI ADHIR RANJAN CHOWDHURY SHRI M. CHANDRAKASI

` .

be pleased to state:-'

- (a) whether the Air India continues to suffer losses in 2015-16;
- (b) if S0, the details thereof;
- (c) whether the Government has provided financial package for its revival, if so, the details thereof;
- (d) whether Air India has ever explored the avenue of collaborating with private airlines for optimal utilization Of resources, mutual benefits, provision of additional passenger amenities/facilities etc  in order to down losses and earn profits, if %0, the details thereof and if not; the reasons therefor; and bring
- (e) the taken by Air India to make turn-around in its operations and make profits? steps

Minister of State in the Ministry of CIVIL AVIATION

(Shri Jayant Sinha)

- (a) & (b): Madam: As per the Provisional Results of the FY 2015-16, Air a moderate Operating Profit: It will be for first time that Air India will post an Operating Profit since its merger in FY-200708. No, post
- (c): In view of the losses suffered by Air India upto 2010-11 and its mounting debt burden; the Cabinet Committee on Economic Affairs (CCEA) in its meeting held on 12,4.2014, approved a Turnaround Plan (TAP) / Financial Restructuring Plan (FRP) for operational and financial turnaround 0f Air India. The TAP/FRI envisages equity induction by the Government subject to

achievement of certain financial and operational parameters. The details of financial support approved under TAP/FRP are as follows:

- 1) Upfront equity of Rs.6750 crores in FY 2011-12
2. iii) Equity for guaranteed aircraft loan tili FY 2021 of Rs.18,929 crores
- i) Equity for Cash deficit support of Rs.4,552 crores till FY 2017-18
4. iv) For GOI guaranteed Non-Convertible Debentures (NCDs); an amount of crores towards interest and Rs.7400 crores towards principal:

Till date, an amount of 23,243 crores has been released as equity support to Air India.

(d): Air India hhas airlines. Air India became a member of the prestigious Star Alliance which helps Air India with regard to optimal utilization %f resources, mutual benefits, provision of additional passenger amenities/facilities thereby providing passengers global reach, seamiess experience, and worldwide recognition.

- (e): As a part of the Turn Around 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: ` These steps inter-alia include the following:
- 1: Route rationalization of erstwhile AI IA routes and elimination of route network involving parallel operations
3. Phasing out of old fleet and consequential reduction in maintenance cost:
2. Rationalization 0f certain loss making routes:
4. Joining of Star Alliance;
6. Closure of overseas offline oflices at certain locations:
7. Introduction of PSS (Passenger Service System) to have single code and SAP ERP based solutions throughout the organization in terms Of increase in revenue and decrease in cost.