Air India incurred loss of over Rs 5,500cr in 2009-10

NEW DELHI: National carrier Air India incurred a loss of over Rs 5,500 crore during the 2009-10 fiscal, the government said today.
The national carrier loss was estimated at Rs 5,552.44 crore, followed by Kingfisher Airlines and Jet Airways at Rs 1,239.30 crore and 467.60 crore respectively in the said fiscal, minister of civil aviation Vayalar Ravi said in a written reply in Lok Sabha.
Besides, another private airline operator Go Air incurred a loss of Rs 65.50 crore in the period.
Low cost carrier IndiGo made the maximum profit (Rs 484.70 crore) in the same fiscal, followed by its rivals SpiceJet Rs 67 crore and JetLite Rs 46.20 crore.
Various measures like equity infusion to Air India and persuading state governments to reduce the sales tax on Aviation Turbine Fuel (ATF) have been taken to check, Ravi said.
"Further, Group of Ministers (GoM) has been constituted by the government to review the operational and financial performance of Air India from time to time and preparation of turn around plan," the minister said.
Air India got Rs 500cr in aid: Meena
Government has provided cash-strapped Air India an advance equity infusion of Rs 500 crore during the current year.
"Air India has been provided ad hoc release of equity of Rs 500 crore in two instalments of Rs 250 crore each during the current year," minister of state for finance Namo Narain Meena said in a written reply in the Rajya Sabha yesterday.
Last month, the finance ministry released around Rs 265 crore to help Air India partially clear its interest dues to banks.
The beleaguered national carrier has an interest burden of Rs 660 crore from April to June. Air India has borrowed loans from a 22 bank-consortium, led by SBI.
Bank of Baroda, Punjab National Bank and Bank of India are the three biggest lender of the airline. Central Bank and HDFC Bank are the other key lenders.
Air India has defaulted on interest dues on the working capital debt, which is put at Rs 22,100 crore.
The banks have given Air India the deadline till July 31 to pay its interest dues, failing which it will be classified as a non-performing asset.
If a company fails to pay installment (the principal amount and interest) for three consecutive months, lenders have the right to classify the loan as a non-performing asset (NPA).
A Group of Ministers had given an approval in principle for additional equity infusion of Rs 1,200 crore and VVIP travel allowance of Rs 532 crore for Air India.