(a) whether the National Aviation Company of India Limited (NACIL) had purchased a large number of aircraft
in 2006 at a time when it was running at a loss and the civil aviation industry was going through a period
of global recession;
(b) if so, the details thereof; and
(c) the reasons therefor?
MINISTER OF THE STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF CIVIL AVIATION (SHRI PRAFUL PATEL)
(a),(b) and (c): A Statement is laid on the Table of the House.
STATEMENT IN REPLY TO PARTs(a),(b) AND (c) OF LOK SABHA STARRED QUESTION NO.116 FOR ANSWERED
ON 04.03.2010 TABLE BY S/SHRI M.B. RAJESH AND SANJAY BRIJKISHORE LAL NIRUPAM. MPs REGRADING
PURCHASE OF AIRCRAFT.
(a),(b) and (c): The erstwhile Air India Limited and Air India Charters Limited had placed purchase orders
with Boeing Airplane Company for 50 aircraft and 18 aircraft respectively in 2005.The erstwhile Indian
Airlines Limited had placed purchase order with Airbus Industrie for 43 aircraft in 2006. The deliveries
of these aircraft commenced from October,2006 and till date 73 aircraft have been delivered. The erstwhile
Air India and erstwhile Indian Airlines had posted profit of Rs.12.43 crores and Rs.63.00 crores respectively
during 2005-06. However, both the Companies posted loss during 2006-07. The purchase of aircraft was based on
market conditions and the growth rate prevailing at that time. Recession started impacting the airline
industry from 2008 onwards.