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Air India losses could touch $1.04 Billion: Patel
Wednesday, 08 July 2009, 14:57 IST |
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New Delhi: Cash-strapped national carrier Air India is expected to register a loss of $1.04 billion (
5,000 crore) last fiscal, Civil Aviation Minister Praful Patel told parliament Tuesday.
"Nacil (National Aviation Co of India Ltd, that operates Air India) is expected to register a loss of approximately 5,000 crore in 2008-09, largely due to high operating expenses, which have been compounded due to the present economic recession resulting in a drop in passengers," the minister said in a reply in Rajya Sabha.
Nacil was formed in 2007 after the merger of Indian and Air India, the merged entity now being knows as just Air India.
Patel said Nacil submitted a proposal last October for equity infusion of 1,231 crore and for a soft loan of 2,750 crore with an interest of around five percent, which it could pay over 15 years.
"The government has advised Nacil to formulate a concrete proposal for equity infusion and provision of soft loan," he said.
The minister further said that high oil prices prevailing last year and debt on account of aircraft acquisition has also led to the losses.
The mounting losses, so far estimated at 4,000 crore in 2008-09, had forced Patel to approach Prime Minister Manmohan Singh last month for a 10,000-crore (about $2-billion) bailout package.
Source: IANS
5,000 crore) last fiscal, Civil Aviation Minister Praful Patel told parliament Tuesday.
"Nacil (National Aviation Co of India Ltd, that operates Air India) is expected to register a loss of approximately 5,000 crore in 2008-09, largely due to high operating expenses, which have been compounded due to the present economic recession resulting in a drop in passengers," the minister said in a reply in Rajya Sabha.
Nacil was formed in 2007 after the merger of Indian and Air India, the merged entity now being knows as just Air India.
Patel said Nacil submitted a proposal last October for equity infusion of 1,231 crore and for a soft loan of 2,750 crore with an interest of around five percent, which it could pay over 15 years.
"The government has advised Nacil to formulate a concrete proposal for equity infusion and provision of soft loan," he said.
The minister further said that high oil prices prevailing last year and debt on account of aircraft acquisition has also led to the losses.
The mounting losses, so far estimated at 4,000 crore in 2008-09, had forced Patel to approach Prime Minister Manmohan Singh last month for a 10,000-crore (about $2-billion) bailout package.
Source: IANS