Most Indian Airlines Suffered Losses In 2012-13

The measures included upfront equity infusion of 6,750 crore, equity for cash deficit support of 4,552 crore till 2017-18 and equity for an already guaranteed aircraft loan of 18,929 crore till the financial year 2021.

Another amount of 7,400 crore was being paid to Air India as Government guarantee for repayment of principal amount and interest payment on non-convertible debentures proposed to be issued by the airline to financial institutions, banks and Life Insurance Corporation.

Maintaining that salary payments had not been stopped in Air India, Raju also said the employees had been paid salaries till May this year and ad hoc or flying allowances till April.

With the national carrier formally joining Star Alliance on July 11, the Minister said Air India’s passenger revenue was expected to grow by 3-5 per cent on this count.

To another question, Raju said two more airlines have recently been granted the initial No Objection Certificate (NOC) by the Ministry to start scheduled regional services.

The airlines are Air Carnival for the Southern region and Zav Airways for the Northeast and the Eastern region, he said, adding that regional airline services needed to be supported by the States as they promoted regional connectivity.