New Delhi: Last year, Rs 2,000 crore of the taxpayer’s money has been handed over to the AI management to keep its planes in the air.
With the airline posting record losses of Rs 8,500 crore (according to the Comptroller and Auditor General) in 2010, the clamour for its privatisation has grown louder.
Despite having the largest fleet of 165 aircraft, AI is struggling to hold on to its depleting market share. In January, it slipped to the fourth position with 15% of the market share.
According to a turnaround plan, vetted and modified by consultancy firm Deloitte Touche Tohmatsu (India) in February, it was projected that AI would need an equity infusion of around Rs 17,500 crore to come out of the current mess.
“To keep running the airline at the cost of the taxpayer’s money is ridiculous,” said Sanat Kaul, former aviation secretary.
“It’s hard to believe that the same airline had posted a profit of over Rs 75 crore in 2005-06,” said a top AI official.
“The only solution to this never ending problem is to privatise the airline,” said a former civil aviation minister, who did not wish to be named.
30/04/11 Tushar Srivastava/Hindustan Times
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