However, Civil Aviation Minister Vayalar Ravi expressed confidence that government would be able to overcome the crisis and wipe out its debts with the active co-operation of the management and employees.
Noting that Air India is passing through a deep crisis with its total debt touching a whopping Rs.43,000 crore, Government today expressed confidence that it would be able to wipe out the debts with active cooperation of management and employees.
Air India has also a net loss of Rs.18,000 crore accumulated in the past three to four years, Civil Aviation Minister Vayalar Ravi said.
Mr. Ravi said AI’s outstanding loan stood at Rs.20,000 crore on account of purchasing new aircraft and Rs.20,000 crore for taking loan for operational purposes.
However, Mr. Ravi expressed confidence that government would be able to overcome the crisis and wipe out its debts with the active co-operation of the management and employees.
Increase in revenue of the Airlines was the silver lining and ‘objective’ is to double the revenue, he said.
Air India employees have extended full support to the government in resolving the problems, he said, while inaugurating the Aircraft Maintenance facility put up by AI here.
On criticism that AI’s debt mounted due to purchase of new aircraft, he said the carrier was able to operate its schedule with the 82 Airbus and Boeing aircraft it acquired.
Otherwise, it would have found it difficult to operate its services.