Air India borrows 15,241 Crore since Nov'07

New Delhi: Borrowings of national carrier Air India have jumped from 6,550 crore to 15,241 crore since November 2007 owing to the global slowdown, high fuel costs and fleet expansion, Civil Aviation Minister Praful Patel told parliament Thursday.

The minister also said the airline has been facing a financial crunch for the past few years. "Its borrowings have risen steeply from 6,550 crore in November 2007 to 15,241 crore in June 2009," he said.

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This, Patel said, was on account of purchase of new aircraft as well as operational losses, which have been compounded by the slowdown and soaring oil prices.

Of the 111 aircraft it has placed orders for, the national carrier has received 48 in the last three years at a cost of 10,438 crore. Currently, it has 155 aircraft including leased ones.

Owing to liquidity crunch, Air India has had to defer payment of salaries and productivity-linked incentives for the month of June to July 15.

The minister said the carrier was setting up a National Passenger Advisory Board to address issues relating to passengers needs and comfort. "This is to strengthen customer care and undertake various customer-reach programmes," he told parliament.

Patel later told reporters that Air India would present its restructuring plan within a month.
Source: IANS