Air India 'running in profit', points out Jayant Sinha
Air India and other domestic airlines are "running in profit", Union Minister Jayant Sinha said on Tuesday, even as the government mulls possible privatisation of the debt-laden national carrier.
He said the government would have to bring a "transformation" in Air India to make it a "good" airline.
The government's think-tank NITI Aayog has proposed total privatisation of the national carrier, which is sitting on a debt pile of Rs 52,000 crore.
However, Union Finance Minister Arun Jaitley has favoured disinvestment of the loss-making carrier.
Addressing a press conference here on Tuesday, Sinha, who is the Minister of State for Civil Aviation, said the government is currently deliberating on the issue of ownership of Air India and Cabinet will take a decision in this regard.
"The current numbers suggest that our airlines are running in profit. They are not running in losses. Even Air India too is in profit," he said.
Air India, which is surviving on a Rs 30,000 crore bailout package spread over 10 years announced by the Manmohan Singh government in 2012, is working on ways to improve its financial position.
In 2015-16, the airline posted operational profit of Rs 105 crore on account of low fuel prices and increased passenger numbers.
"We are fortunate that oil prices have come down. The cost of aviation turbine fuel has come down 40 to 50 per cent and because of that flying has become affordable," Sinha said.
He said the government has undertaken efforts to further bring down various charges, including those related to airport and landing.
Observing that the aviation sector has seen growth, the minister said that air tickets have become cheaper and affordable, as a result of which the common man too is flying.
"As far as the passenger trips are concerned, in the last three years, there is a 70 per cent rise. So it is wrong to say that the aviation sector is running into losses, in fact they (airlines) are in profit," he added.
Sinha said there are currently 500 commercial jets in the country and more than 850 new jets are on order.
"The new order has been placed because they are in profitable business and sustainable too," he said.