Wrong On Facts

We were shocked to read the story captioned IA to tap foreign banks for loan to pay wage arrears (January 7).The financial position of the company has shown steady improvement with operating profits at Rs 36.24 crore and Rs 156.51 crore in 1994-95 and 1995-96, respectively.

Your correspondent has made sweeping observations without bothering for accuracy. For example, the net worth of the company has been positive throughout.

IA did not take any foreign currency loan of Rs 63 crore during 1996, as stated in the report. In 1995, it had taken a loan of $15 million for import of stores and spares and which was repaid in March 1996. The loan of Rs 60 crore from Air India was adjusted against their outstanding dues. The other loans were availed much earlier to finance acquisition of aircraft, which is a normal commercial practice. Your correspondent chose to send only fax messages instead of personally contacting us for right information.

 

Another news item IA refuses to pay guarantee fee for govt loans (January 24) too has distorted facts. The government has given a guarantee in respect of the loan taken by IA for acquisition of Airbus A320 aircraft in two batches