Cash-strapped Air India owes over Rs 1,200 crore to three public sector oil companies and is expected to incur a loss of Rs 5,400 crore in the last fiscal, the Rajya Sabha was informed today.
The amount due to the three PSU oil companies as on April 20 is Rs 1,203.75 crore. Also, the airlines is expected to incur a loss of Rs 5,400 crore approximately during the year 2009-10, Civil Aviation Minister Praful Patel said in a written reply to the Upper House.
He said the national carrier has offices in 13 cities abroad namely Los Angeles, Amsterdam, Milan, Vienna, Copenhagen, Moscow, Zurich, Cairo, Brussels, Tehran, Nairobi, Sydney and Chittagong but it does not operates its own flights to these destinations.
The Civil Aviation Minister also said 77 per cent of Air India's expenditure accounts for aviation turbine fuel, staff costs, interest on working capital borrowings and aircraft loan, hire of aircraft, maintenance of aircraft and landing, handling and navigational charges.
The National Aviation Company of India Ltd, which runs Air India, has submitted a turn-around plan to the government focusing on reduction of losses through rationalisation of fleets, routes and manpower, Patel said, adding it also includes operationalisation of Strategic Business Units and improving revenues.
In reply to a separate question, Patel said Air India has not sold any new planes, adding, in 2009, Air India accepted delivery of three Boeing 777-200 (Long Range) and four Boeing 777-300 (Extended Range) aircraft by arranging a Bridge loan facility from Standard Chartered Bank secured by a mortgage over the aircraft.
"However, in the negotiations of a long term delivery financing supported by the US EXIM guarantee at very competitive rates, EXIM financing envisages a finance lease structure on similar lines as a higher purchase agreement," he said in the reply.
