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Air India owes Rs 2,333 cr to oil marketing companies

Air India owes Rs 2,333 cr to oil marketing companies

The Government says the cash-strapped Air India owed around Rs 2,333 crore to three state-run oil marketing firms at the end of June.

The Government on Thursday said the cash-strapped Air India owed around Rs 2,333 crore to three state-run oil marketing firms at the end of June.

"As on June 30, 2011, the total dues outstanding to IOCL, HPCL and BPCL were Rs 1,558.18 crore, Rs 342.27 crore and Rs 432.65 crore, respectively," Aviation Minister Vyalar Ravi said in a written reply in the Rajya Sabha.

He said the oil marketing companies had placed Air India under cash-and-carry scheme from December 7, 2010, due to huge out standings.

The airline has taken a number of steps to improve its financial and operational performance, which would lead to improvement in its liquidity position and would enable it to meet its commitments to the oil PSUs, Ravi said.

AI cheque bounces, fuel supply halted

To another query, he said that Air India's fuel uplift has increased from Rs 12-13 crore to Rs 15-16 crore per day partly because of the rise in price of aviation turbine fuel.

Ravi said the airline incurred a loss of Rs 2,226.16 crore in 2007-08, Rs 5,548.26 crore in 2008-09, Rs 5,552.55 crore during 2009-10. The estimated loss for 2010-11 is Rs 6,994 crore.

"The losses are mainly due to the prevalent economic recession, higher fuel prices, low yields and load factor," he added.

On whether the government owed Air India huge sum of money on account of flights availed for travel of ministers, Ravi said, "Yes."

"An amount of Rs 291.90 crore is due to be paid to Air India for operating special extra section flight for travel of Hon'ble President of India, Vice President and Prime Minister," he said.

He added that the outstanding dues towards VVIP flights as on March 31, 2009, were Rs 48.05 crore; as on March 31, 2010, Rs 128.27 crore and as on March 31, 2011, Rs 115.59 crore.

"Air India has raised bills for VVIP operations and evacuation flight amounting to Rs 373 crore," he said, while responding to another query.

He added that the Government has released Rs 800 crore in 2009-10, Rs 1,200 crore in 2010-11 towards equity infusion to Air India. Government has made a provision of Rs 1,200 crore towards equity for Air India during 2011-12.