Civil Aviation Minister Jyortiraditya Scindia recounted how India’s flagship carrier turned into a loss-making entity under the UPA.
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00:00I am answering your question.
00:02You made me open my mouth.
00:04I was not saying anything.
00:06Many issues were raised here, Mr. President.
00:08The government is selling airports.
00:10I want to explain.
00:12Before 2005,
00:14which, see Mr. President,
00:16which Air India
00:18makes a profit of 15 crores
00:20and which Indian Airlines
00:22makes a profit of 50 crores.
00:24Losses of 14 years, 85,000 crores.
00:262,50,000 crores
00:28loss
00:30in Air India.
00:54Many issues were raised here, Mr. President.
00:56You made me open my mouth.
00:58I was not saying anything.
01:00Many issues were raised here, Mr. President.
01:02Before 2005,
01:04which, see Mr. President,
01:06which Air India
01:08makes a profit of 15 crores
01:10and which Indian Airlines
01:12makes a profit of 50 crores
01:14loss
01:16in Air India.
01:18Losses of 14 years, 85,000 crores.
01:202,50,000 crores loss
01:22in Air India.
01:24The 6 airports
01:26you are referring to,
01:30those 6 airports
01:32based on investment
01:34or privatization
01:36have not been given
01:38to private companies.
01:40Those airports
01:42have been given only
01:44for 50 years
01:46based on a lease structure.
01:48What is the difference
01:50between investment and leasing?
01:52What is the difference, Mr. President?
01:54The first difference is
01:56that in investment
01:58you sell your
02:00Sai equipment.
02:02It will never come back.
02:04In leasing structure,
02:06like you lease your house,
02:08you lease your office space,
02:10on rent you give it for a few years.
02:12Point number 2,
02:14in investment
02:16you only get
02:18one form of interest
02:20that what is the price
02:22of your Sai equipment, we will give it to you.
02:24After that, bye bye.
02:26In leasing structure,
02:28you get
02:30interest for your
02:32Sai equipment
02:34and along with that,
02:36every year you will be given
02:38rent per person.
02:40Third difference,
02:42Mr. President,
02:44in investment
02:46build, operate and own
02:48model is used.
02:50And in leasing structure,
02:52build, operate,
02:54own and transfer back
02:56model is used.
02:58And fourth difference,
03:00Mr. President,
03:02in privatization,
03:04that Sai equipment
03:06will never come back
03:08to the Indian government.
03:10In leasing structure,
03:12after 50 years,
03:14whatever improvements
03:16will be done on it,
03:18it will become
03:20the property of the Indian government.
03:22Air India, Mr. President,
03:24was the
03:26new creation of the country.
03:30It started
03:32from the private sector.
03:36It was
03:38nationalized.
03:42And after nationalization,
03:46for many years,
03:48it was successfully run.
03:50The state of Air India today,
03:52why did this state arise?
03:54We need to understand this, Mr. President.
03:56Now I will take some time,
03:58Mr. President.
04:02In 2005-06,
04:06the Air India
04:10capability
04:12was only of
04:1415 crore rupees.
04:16With that Air India,
04:2068 aircraft
04:22were purchased
04:24by Boeing
04:26and 43 aircraft
04:28by Airbus.
04:30The company
04:32whose capability
04:34is of 15 crore rupees,
04:38with that company,
04:40Air India and Air India Express,
04:42211 aircraft
04:44were being purchased.
04:48What could be the reason?
04:50I don't want to discuss this.
04:52The two companies,
04:54profit-making companies in 2005,
04:56the year they were merged,
04:58from that year,
05:00a loss of 3,300 crores
05:02was started.
05:04From 2007-08 to
05:062020-21,
05:08every year,
05:10a loss of 7,500 crores
05:12was started.
05:14A loss of 85,000 crores
05:16was caused by the combined merger
05:18of Air India.
05:20I am answering your question.
05:22Otherwise, I was quiet.
05:24You didn't ask.
05:26You made me speak.
05:28I didn't say anything.
05:30You made me speak.
05:32I was quiet.
05:34What is the position
05:36of the airlines?
05:38You made me speak.
05:40Losses of 14 years,
05:4285,000 crores.
05:44Infusion of India's
05:46equity, 54,000 crores.
05:48Government grant,
05:5050,000 crores.
05:52190,000 crores,
05:54and the current net debt
05:56was 66,000 crores.
05:58So, a loss of 2,50,000 crores
06:00was created
06:02in Air India.
06:04And this money
06:06does not belong to the government.
06:08This money belongs to
06:10135 crore people of India.
06:12And our Prime Minister
06:14decided
06:16that
06:18this loss
06:20must be stopped
06:22and it must be
06:24invested.