Air India losses could touch Rs.5,000 crore: Patel
July 7th, 2009 - 9:55 pm ICT by IANS
New Delhi, July 7 (IANS) Cash-strapped national carrier Air India is expected to register a loss of Rs.5,000 crore last fiscal, Civil Aviation Minister Praful Patel told parliament Tuesday.
“Nacil (National Aviation Co of India Ltd, that operates Air India) is expected to register a loss of approximately Rs.5,000 crore in 2008-09, largely due to high operating expenses, which have been compounded due to the present economic recession resulting in a drop in passengers,” the minister said in a reply in Rajya Sabha.
Nacil was formed in 2007 after the merger of Indian and Air India, the merged entity now being knows as just Air India.
Patel said Nacil submitted a proposal last October for equity infusion of Rs.1,231 crore and for a soft loan of Rs.2,750 crore with an interest of around five percent, which it could pay over 15 years.
“The government has advised Nacil to formulate a concrete proposal for equity infusion and provision of soft loan,” he said.
The minister further said that high oil prices prevailing last year and debt on account of aircraft acquisition has also led to the losses.
The mounting losses, so far estimated at Rs.4,000 crore in 2008-09, had forced Patel to approach Prime Minister Manmohan Singh last month for a Rs.10,000-crore (about $2-billion) bailout package.
- Praful Patel to meet PM on Air India crisis - Jul 21, 2009
- Am aware of Air India's woes, solution soon: PM - Jun 30, 2011
- Cash-strapped Air India to get Rs.1,200 crore - Dec 30, 2010
- Equity infusion into Air India to be discussed soon - Sep 16, 2009
- Air India losses double to Rs.5,000 cr - Dec 01, 2009
- Air India will turnaround, once revival plan takes off: Vayalar Ravi - Jun 14, 2011
- Air India makes turnaround pitch to bankers - Apr 08, 2011
- Air India's parent firm seeks capital infusion, soft loan - Feb 26, 2009
- Ministerial panel seeks clarification from Air India - Feb 03, 2010
- Air India to get Rs.4,000 crore budget support for 2012-13 - Mar 16, 2012
- Government to pump Rs.1,732 crore into Air India - Aug 04, 2011
- Government to contemplate capital infusion for cash strapped Air India: Patel - Jul 14, 2009
- Ministerial panel on Air India to meet next week: Ravi - Jul 18, 2011
- Government bound to revive Air India: Official - Jul 14, 2011
- Air India to lose around Rs.5,400 crore in 2009-10: Patel - Mar 09, 2010
Tags: air india, aircraft acquisition, bailout package, carrier air, civil aviation, concrete proposal, economic recession, equity infusion, india ltd, manmohan, manmohan singh, national aviation, national carrier, praful patel, prime minister manmohan, prime minister manmohan singh, rajya sabha, rs 2, soft loan, touch rs