New Delhi: The state-owned ailing flag carrier is in news again. Air India, which has been under losses for over a decade now, has made operating profit estimated at a little over Rs 100 crore in the financial year 2015-16. During his independence day speech, prime minister Narendra Modi spoke about bringing in a new culture that eventually helped in turning around loss-making public sector behemoths Air India and BSNL. Making an operating profit for the first time in a decade is certainly an achievement for the company which has always been in red since its merger with Indian Airlines in 2007. But there is more to this growth story than meets the eye. Air India has been struggling with mounting debts since the beginning. And the government has made a lot of investments to keep it functional. The losses of Air India were Rs 5,490.16 crore (2012-13), Rs 6,279.6 crore (2013-14) and Rs 5,859.91 crore (2014-15). The finance ministry in 2012 gave over Rs 30,000 crore under a bailout plan, stretching over a period of nine years, to turn around the company. There are 157 central public sector enterprises (CPSEs) which are audited by the CAG. In 2012-13, as per CAG data they had accumulated losses of Rs 1,10,285 crore. In the same year, MTNL, BSNL and Air India together made losses of about Rs 18,000 crore, while the total losses of all the CPSEs were Rs 28,562 crore. Air India was the second highest loss-maker after Bharat Coking Coal.
01/09/16 Jasleen Kaur/Governance Now
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01/09/16 Jasleen Kaur/Governance Now
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