National carrier Air India (AI) is expected to incur a loss of about Rs 5,400 crore during 2009-10 and the trend of losses is likely to continue for few more years, Parliament was informed today. 

Thus, the total loss incurred by the airline in the past three financial years is likely to reach Rs 13,174.16 crore.

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"The trend of losses is likely to continue for few more years," Patel said, without specifying how long. On the airline's cost reduction and turnaround plans, the Minister said that it will be able to save only Rs 753 crore in FY10, against Rs 1,911 crore envisaged.

"The cost reduction/turnaround plan envisages benefits of Rs 1,911 crore for FY 2009-10. However, NACIL (National Aviation Company of India Ltd) has implemented various initiatives which will only result in savings of Rs 753 crore in FY 2009-10," Patel said.

In reply to another question related to lease rentals, the Minister said no action was warranted against any NACIL employee on such payments.

Patel said, the erstwhile Air India and Indian Airlines had entered into lease agreements with lessors in accordance with international norms.

"At the end of the lease, some lessors are very strict in applying lease return conditions to the minutest detail, while others have a more practical approach in receiving the returned aircraft," he said, adding, "No action against any employee of NACIL was warranted."

Patel said that the total outgo on lease rental payments for 2009-10 (up to February 10) was Rs 759.25 crore. During 2007-08 the outgo was Rs 717.20 crore and in 2008-09 it was Rs 811 crore.

On the outstanding fuel dues of NACIL, the Minister said, it was Rs 1,741 crore. "The government has advised NACIL to clear these dues expeditiously," he added.

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