(a) whether the Government has not acceded to the demands of some private airlines for financial assistance/bailout packages;
(b) if so, the details thereof and the reasons therefor; and
(c) the present status thereof including of Air India?
(a) whether the Government has not acceded to the demands of some private airlines for financial assistance/bailout packages;
(b) if so, the details thereof and the reasons therefor; and
(c) the present status thereof including of Air India?
The Minister of State in the Ministry of CIVIL AVIATION
(Shri Jayant Sinha)
(a) and (b): No such demand has been received by this Ministry.;
(c): In order to help Air India in mitigating its continuing losses and to take back on the path of profitability, the Government has already approved and implemented a Turn Around Plan (TAP) and Financial Structuring Plan (FRP) of Air India in 2012 in terms of which all Government Guaranteed loans and interests thereon are being paid by the Government by way of equity infusion into Air India. Similarly, an FRP has also been implemented by means of which high cost working capital loans have been converted into long term debt carrying lesser rates of interest so as to reduce the financial burden on Air India.
The TAP/FRP includes budgetary support amounting to Rs. 30231 crores spread over 10 years i.e. upto FY 2020-21 and also equity support for the payment of principal/interest of the Non-Convertible Debentures. Air India has received an equity infusion of Rs. 27195.21 crores till FY 2018