- The airline had a loss of Rs 5348 crore in 2017-18.
- Government is trying to disinvest Air India
Air India incurred a loss (provisional) of Rs 8,556.35 crore in the last financial year (2018-19). This is the biggest annual loss ever. The airline incurred losses due to the low use of aircraft and high air-fuel prices.
Air India faces the biggest annual loss ever
The loss also increased due to the loss of around 30 million to 4 million rupees per day during the shutdown of Pakistan’s airspace. Aviation Minister Hardeep Singh Puri informed Air India data in the Lok Sabha on Thursday.
69575 crore loss in 10 years
The airline had a loss of 5,348.18 in 2017-18. After the merger with Indian Airlines in 2007, Air India was not profitable even once. In the last ten years, it has suffered a loss of 69,575.64. Puri said that in view of the loss and debt situation of Air India, the then government had approved a revival package of Rs 30,000 crore in 2012. The airline has received Rs 30,520.21 crore since 2011-12.
Air India has a total debt of Rs 58,000 crore. The government is trying to sell the airline. Last year an attempt to sell a 76% stake failed. This time the rules of bidding have been simplified by creating a new strategy. The aviation minister said last week that if Air India is not privatized, its operations will become difficult.
Currently, foreign airlines are barred from buying more than 49% in a local carrier, and foreign investors, other than airlines, need government approval to buy a stake bigger than 49%.
An email to the DPIIT was unanswered. A representative for the aviation ministry didn’t immediately respond to a request for comment.
Finance Minister Nirmala Sitharaman in her budget speech in July had said Prime Minister Narendra Modi’s government will look into suggestions of opening up sectors including aviation to more foreign investment. It has already eased rules in a number of areas such as retail, manufacturing and coal mining.
