Air India projected net loss for 2017-18 estimated less than 2016-17

Vastavam web: Air India’s projected net loss for 2017-18 is estimated at over Rs 3,500 crore, which was less than the provisional figure for 2016-17, government said in the Rajya Sabha today.Civil Aviation Minister Ashok Gajapathi Raju said in a written reply that the projected net loss of Air India in the budget estimates for 2017-18 (provisional) stood at Rs 3,579 crore as against Rs 3,643 crore (provisional) for the year 2016-17.Replying to supplementaries on the proposed sale of state -owned Air India, Raju said the specific alternative mechanism will guide the process of strategic disinvestment from time to time.

The committee is headed by the Finance Minister and has Commerce Minister Suresh Prabhu, Transport Minister Nitin Gadkari and Railway Minister Piyush Goyal. “This Committee will take a decision as to what has to happen there. As of now, if any suggestion from any quarter are welcome and the Government will definitely take them into consideration.”The Cabinet Committee on Economic Affairs (CCEA, in its meeting held on June 28, 2017, has given in-principle approval for considering strategic disinvestment of Air India and its five subsidiaries and constitution of Air India Specific Alternative Mechanism (AISAM) to guide the process of strategic disinvestment from time to time,” he said in his written reply.

He also said that Air India has been incurring continuous losses and has huge accumulated losses.”Niti Ayog in its report on Air India has stated that further financial support in a mature and competitive aviation market would not be the best use of scarce financial resources of the government,” he said.