New Delhi: Me and you, this country's tax payers, have bankrolled the government's bailout of Air India (AI) since 2012 when a turnaround and financial restructuring plan was approved to save this ailing airline. The turnaround plan itself was needed because of a previous government's decision in 2005-06 on purchase of 111 aircraft, which left the airline gasping for breath under insurmountable debt. But then that is another story all together.
Since April of 2012 till now, the exchequer has provided a whopping Rs 22,280 crore equity support to Air India, as per a written reply in the Rajya Sabha by MoS Civil Aviation Mahesh Sharma. That is well over 70% of the promised support that turnaround plan (TAP) envisaged over a 10-year period since total promised money for Air India's turnaround is Rs 30,000 crore. Why has over two-thirds of the promised money been given in the first three-and-a-half years of the TAP is a question begging an answer.
But look at this statistic another way. The government has pumped in Rs 530.47 crore per month on an average into the loss-making national carrier under various heads in the last about 42 months. Of course, the airline in on course to declare a tiny Rs 6 crore operating profit after a decade this fiscal, and the government has been at pains to explain how Air India's financial and performance parameters have been improving.
09/12/15 Sindhu Bhattacharya/F.Business
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Since April of 2012 till now, the exchequer has provided a whopping Rs 22,280 crore equity support to Air India, as per a written reply in the Rajya Sabha by MoS Civil Aviation Mahesh Sharma. That is well over 70% of the promised support that turnaround plan (TAP) envisaged over a 10-year period since total promised money for Air India's turnaround is Rs 30,000 crore. Why has over two-thirds of the promised money been given in the first three-and-a-half years of the TAP is a question begging an answer.
But look at this statistic another way. The government has pumped in Rs 530.47 crore per month on an average into the loss-making national carrier under various heads in the last about 42 months. Of course, the airline in on course to declare a tiny Rs 6 crore operating profit after a decade this fiscal, and the government has been at pains to explain how Air India's financial and performance parameters have been improving.
09/12/15 Sindhu Bhattacharya/F.Business
