National carrier Air India is expected to incur a loss of about Rs 5,400 crore during 2009-10 and the trend of losses is likely to continue for few more years, Parliament was informed on Tuesday.
Thus, the total loss incurred by the airline in the past three financial years is likely to reach Rs 13,174.16 crore.
"Air India has incurred a loss of Rs 2,226.16 crore and Rs 5,548 crore during the financial year 2007-08 and 2008-09 respectively. Air India is expected to incur a loss of Rs 5,400 crore approximately during the year 2009-10," Minister of State (Independent Charge) for Civil Aviation Minister Praful Patel said in the Rajya Sabha.
"The trend of losses is likely to continue for few more years," Patel said, without specifying how long.
On the airline's cost reduction and turnaround plans, the Minister said that it will be able to save only Rs 753 crore in FY10, against Rs 1,911 crore envisaged.
"The cost reduction/turnaround plan envisages benefits of Rs 1,911 crore for FY 2009-10. However, NACIL (National Aviation Company of India Ltd) has implemented various initiatives which will only result in savings of Rs 753 crore in FY 2009-10," Patel said.
In reply to another question related to lease rentals, the Minister said no action was warranted against any NACIL employee on such payments.