Air India's debt has been rising for the last three years as it has been incurring losses for reasons such as an increase in competition, especially from Low-Cost Carriers (LCCs), high-interest burden and operating costs, Union Aviation Minister Hardeep Singh Puri on Wednesday.
In 2016-17, 2017-18 and 2018-19, the debt figures for disinvestment-bound Air India were Rs 48,447 crore, Rs 55,308 crore, and Rs 58,255 crore respectively, Puri said.
The main reasons for increase in debt burden is due to "losses suffered on account of various reasons such as high-interest burden, increase in competition especially from the LCCs, adverse impact of exchange rate variation due to weakening of Indian Rupee and high operating costs," Puri said in a written reply to a question in Rajya Sabha.
The Central government last month issued a preliminary information memorandum (PIM), initiating the process to divest its entire stake in the national air carrier.
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