Civil aviation minister Hardeep Singh Puri in Lok Sabha informed on Thursday (5 December) that the national carrier Air India posted a record provisional net loss of ₹8,556.35 crore in 2018-19, reports LiveMint.
Notably, in the previous year it had a net loss of ₹5,348.18 crore. As per reports, accumulated losses at Air India have swelled to about 69,575.64 crore in the past decade and has never seen a profit since its merger with Indian Airlines in 2007-08.
Experts are of the opinion that the airline has slim chance of making profit under government control, boosting the need to privatise the carrier. The airline is surviving on tax-payers money and is witnessing increased accumulated losses every year.
Last week Puri said in Rajya Sabha that national carrier Air India will have to close down if it is not privatised. He, however, said that a favourable deal would be ensured for all the employees.
Earlier in October, the companies had sent a letter to Air India saying that the fuel supply would be cut if the national carrier did not make ‘lumpsum payments, as has been agreed’, which owes a debt of around Rs 5,000 crore to the oil suppliers. On the top of that, it owes debt of about ₹58,000 crore, including working capital and aircraft debt.
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