Hyderabad: Civil aviation minister Ashok Gajapati Raju on Wednesday refused to draw parallels between Air India and Kingfisher saying that though Air India has huge debts, it has not committed any fraud or defaulted on its loans. Air India has nearly Rs 50,000 crore debts compared to less than Rs 9,000 crore debts of liquor baron Vijay Mallya’s Kingfisher Airlines.
While admitting that Air India has huge debts, civil aviation minister defended the national carrier. “I don’t think Air India has cheated any one. These debts have accumulated over the years and a turnaround plan is being implemented with infusion of Rs 2,500 crore on an average every year. Let’s not compare Air India with Kingfisher. It has pushed up leasing costs,” he said.
Civil aviation secretary R.N. Choubey said Air India is expected to make complete turn around and make even net profit one-and-a-half year before its targeted 2020 fiscal as its passenger yield, load factor and aircraft utilisation levels are improving.
The minister also said that Air India will file a recovery suit against Kingfisher as the airline owes landing and parking charges and also there are two cheque bounce cases pending against it.
