“Air India needs more funds”

According to the CAG report tabled in Parliament on 10 March 2017, Air India has understated its losses : “Though AI reported a positive EBITDA of Rs 166 crore (April-December 2014) from a negative Rs 191 crore (April-December 2013), both the statutory auditor and the CAG had expressed qualified opinion on AI’s accounts for all the three years (2012-13 to 2014-15), pointing out significant understatement of losses in (its) financial statements”.

In 2005-06 during UPA-I, the Government had ordered 50 wide body aircraft from Boeing worth Rs 33,197 crore for Air India and 43 narrow body A320s from Airbus worth Rs 8,400 crore for the erstwhile Indian airlines. “The airline had over-provisioned wide body aircraft... while it had an acute shortage of narrow body aircraft. Even though the company was aware of the shortage and had initiated the process of leasing Airbus A320 aircraft as early as July 2010, only five aircraft could be inducted by 31 March 2015, against the requirement of 19, the CAG report stated.”