Air India (AI, Delhi International) is owed INR7.5 billion (USD110 million) by the Indian Government for air services relating to defence and the transport of Very Very Important Persons (VVIPs), reports the Business Standard.
The outstanding payments are for services such as ferrying Prime Minister Narendra Modi and other senior ministers, as well as evacuation operations. Some of the bills have been unpaid since June 2014. The national airline uses two of its B747-400s for VVIP operations, which are put back into commercial service when not required by the state.
The state-owned carrier managed to end 2016 with an operating profit of INR1.05 billion (USD15.3 million), following several years of poor performance. In 2012, the government granted Air India an INR300 billion (USD4.3 billion) bailout, of which it has currently committed INR210 billion (USD3 billion). However, the upturn has more to do with lower jet fuel prices than improved management. Speaking to the Economic Times of India, Air India Chairman & Managing Director Ashwani Lohani admitted that "the number one factor that helped us achieve profits was low oil prices."
Despite the good fiscal news last year, Air India still faces a debt of INR460 billion (USD6.7 billion).
