Question : INCOME AND EXPENDITURE OF AI

(a) the details of the expenditure and the income of Air India during each of the last three years and the current year;

(b) the details of financial packages announced during the above period;

(c) whether the Government is contemplating to privatize debt ridden Air India/pay AI`s huge debt burden;

(d) if so, the details thereof;

(e) whether any responsibility has been fixed for the losses suffered by AI;

(f) if so, the details thereof and if not, the reasons therefor; and

(g) the steps taken/proposed to be taken to trim down unwarranted expenditure?

Answer given by the minister

MINISTER OF THE STATE IN THE MINISTRY OF OVERSEAS INDIAN AFFAIRS & MINISTER OF CIVIL AVIATION (SHRI VAYALAR RAVI)

(a): The details of expenditure and income of Air India during each of the last three years are as under:-

(Rs. in crore)

2008-09 2009-10	2010-11(Pro.)

Revenue	13479.38	13402.27	13963.93

Expenses	20668.01	19053.83	21361.43

(b): Government has infused Rs. 800 crore in FY 2009-10 Rs. 1200 crore in FY 2010-11 as equity in Air India. A further provision of Rs.1200 crore towards equity infusion has been made in the budget for 2011-12.

(c) No, Madam.

(d): Does not arise.

(e) and (f): No, Madam. The losses are due to escalating fuel prices, falling yields and high interest costs.

(g): Air India has taken a series of measures for reducing costs. These include rationalization of certain loss making routes, return of leased aircraft, phasing out of old fleet, reduction in contractual employment & outsourced agencies, fuel savings through critical analysis of fuel consumption, optimization of aircraft utilization, closure of foreign stations, offline offices, etc.

Question : INCOME AND EXPENDITURE OF AI

Answer given by the minister

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