Question : Dues of Haj 2012

(a) whether Air India had entered into an agreement with the Indian representative of Orbest Airlines, Spain for operation of Haj 2012 flight to Saudi Arabia and paid a huge amount to their representative on the advice of Orbest airlines;

(b) whether it is also a fact that balance payment to the Indian representative has not been paid even against bank guarantee/indemnity Bond causing financial hardship to SMSEs;

(c) if so, whether the Government proposes to clear all payable dues on account of operation of Haj 2012; and

(d) if so, the details thereof?

The Minister of State (IC) in the Ministry of CIVIL AVIATION
(Shri Hardeep Singh Puri)

(a): For seamless operations of Phase II of Haj operations of 2012, Air India entered into an agreement on 3rd November 2012 with M/s Orbest Airlines incorporated in Spain to carry the Haj pilgrims from Medina to Gaya at the same terms & conditions and rates as agreed between Air India and M/s Jet Airways.

(b) to (d): An amount of USD 3,435,419/- was due to Orbest Airlines towards fare. A payment of USD 2,275,000/- was made after deducting the amount of expenses of USD 937,882/- incurred by Air India on behalf of Orbest Airlines. The amount of USD 222,537/- was outstanding with Air India of Orbest Airlines for Haj 2012 operations. However, Orbest Airlines went into liquidation. As per legal advice, Air India is contractually bound to pay only to Orbest Airlines which has gone into liquidation and the outstanding amount can only be paid to liquidators or to the new Board of Directors of Orbest Airlines.