Air India will overcome its Rs43,000-crore debt problem: Ravi
16 Dec 2011
Civil aviation and overseas Indian affairs minister Vayalar Ravi today expressed confidence that Air India, the national carrier, will be able to turn the corner despite being deep in the red.
Noting that Air India is passing through a severe crisis, with its total debt touching Rs43,000 crore, he nonetheless said the airline – which is largely surviving on government infusions of capital – would be able to pay off the debts with the cooperation of its management and employees.
Ravi was speaking in the Kerala capital of Thiruvanathapuram after the commissioning of a Rs110-crore maintenance, repair and overhaul (MRO) facility near the international airport there.
He said Air India has accumulated a net loss of Rs18,000 crore in the past three or four years. Its outstanding loans stood at Rs20,000 crore on account of purchasing new aircraft and another Rs20,000 crore loan for operational purposes, he noted.
He said an increase in revenue of the airline in recent times was the silver lining to the dark clouds, and the objective is to double the revenue.
Air India employees have extended full support to the government in resolving the problems, he said.
