section_path: History/Financial trouble, merger with Indian and later (2000–2022)
section_name: Financial trouble, merger with Indian and later (2000–2022)
paragraph_text: Financial trouble, merger with Indian and later (2000–2022)
  
  In 2000–01, attempts were made to re-privatize Air India. In 2000, Air India introduced services to Shanghai, China. On 23 May 2001, the Ministry of Civil Aviation charged Michael Mascarenhas, the then-managing director, with corruption. According to the ministry reports, the airline lost approximately ₹ 570 million (US$6.7 million) because of extra commissions that Mascarenhas sanctioned and he was later suspended from the airline. In May 2004, Air India launched a wholly owned low cost subsidiary called Air-India Express connecting cities in India with the Middle East and Southeast Asia. Until 2007, Air India mainly operated on international long-haul routes while Indian Airlines operated on domestic and international short-haul routes. In 2007, Air India and Indian Airlines were merged under Air India Limited and the airline took delivery of its first Boeing 777 aircraft. The airline was invited to be a part of the Star Alliance in 2007.
  
  Around 2006, both Air India and Indian Airlines showed signs of financial crisis as combined losses were ₹ 7.7 billion (US$91 million). After the merger, it went up to ₹ 72 billion (US$850 million) by March 2009. In July 2009, State Bank of India was appointed to prepare a road map for the recovery of the airline. The carrier sold three Airbus A300 and one Boeing 747-300M in March 2009 for $18.75 million to finance the debt. By March 2011, Air India had accumulated a debt of ₹ 426 billion (US$5.0 billion) and an operating loss of ₹ 220 billion (US$2.6 billion), and was seeking ₹ 429 billion (US$5.1 billion) from the government. A report by the Comptroller and Auditor General blamed the decision to buy 111 new planes and the ill-timed merger with Indian Airlines for the poor financial situation. In August 2011, the invitation to join Star Alliance was suspended as a result of its failure to meet the minimum standards for the membership. The government pumped ₹ 32 billion (US$380 million) into Air India in March 2012.
  
  On 1 March 2009, Air India made Frankfurt Airport its international hub for onward connections to the United States from India. However, the airline shut down the Frankfurt hub on 30 October 2010 because of high operating costs. In 2010, financially less lucrative routes were terminated and the airline planned to open a new hub for its international flights at Dubai. In 2012, a study commissioned by the Corporate Affairs Ministry recommended that Air India should be partly privatised. In May 2012, the carrier invited offers from banks to raise $800 million via external commercial borrowing and bridge financing. In May 2012, the airline was fined $80,000 by the US Transportation Department for failing to post customer service and tarmac delay contingency plans on its website and adequately inform passengers about its optional fees.
  
  In 2013, the then-Civil Aviation Minister Ajit Singh stated privatisation was the key to the airline's survival. However, the opposition led by the BJP and the CPI(M) slammed the government. In 2013, the Indian government planned to delay equity infusion of ₹ 300 billion (US$3.5 billion) that was slated to be infused into the airline slowly over eight years. In January 2013, Air India cleared a part of its pending dues through funds raised by selling and leasing back the newly acquired Boeing 787 Dreamliners. In March 2013, the airline posted its first positive EBITDA after almost six years and 20% growth in its operating revenue since the previous financial year. Air India Limited split its engineering and cargo businesses into two separate subsidiaries, Air India Engineering Services Limited (AIESL) and Air India Transport Services Limited (AITSL) in 2013. In December 2013, the airline appointed veteran pilot SPS Puri as its head of operations. The appointment was criticised by the Air India pilots union as Puri allegedly has multiple violations to his name.
  
  Air India became the 27th member of Star Alliance on 11 July 2014. In August 2015, it signed an agreement with Citibank and State Bank of India to raise $300 million in external commercial borrowing to meet working capital requirements. For FY 2014–15, its revenue, operating loss and net loss were ₹ 198 billion (US$2.3 billion), ₹ 2.171 billion (US$26 million) and ₹ 5.41 billion (US$64 million) compared FY 2011–12, which were ₹ 147 billion (US$1.7 billion), ₹ 5.138 billion (US$61 million) and ₹ 7.55 billion (US$89 million). As of February 2016, Air India was the third largest carrier in India, after IndiGo and Jet Airways with a market share of 15.4%.
  
  On 21 May 2021, it was reported that Air India was subjected to a cyberattack whereas the personal details of about 4.5 million customers around the world were compromised including passport, credit card details, birthdates, name and ticket information. Air India's data processor, SITA, reported the data breach to Air India in around February 2021. The data breach involved all information which was registered in the SITA data processor between 26 August 2011 and 20 February 2021, and the cyberattackers gained access to the systems for a period of 22 days. Air India told passengers that there was no conclusive evidence on whether any misuse of the personal data has been reported and urged passengers to immediately change their passwords.
  
  In 2000–01, attempts were made to re-privatize Air India. In 2000, Air India introduced services to Shanghai, China. On 23 May 2001, the Ministry of Civil Aviation charged Michael Mascarenhas, the then-managing director, with corruption. According to the ministry reports, the airline lost approximately ₹ 570 million (US$6.7 million) because of extra commissions that Mascarenhas sanctioned and he was later suspended from the airline. In May 2004, Air India launched a wholly owned low cost subsidiary called Air-India Express connecting cities in India with the Middle East and Southeast Asia. Until 2007, Air India mainly operated on international long-haul routes while Indian Airlines operated on domestic and international short-haul routes. In 2007, Air India and Indian Airlines were merged under Air India Limited and the airline took delivery of its first Boeing 777 aircraft. The airline was invited to be a part of the Star Alliance in 2007.
  
  Around 2006, both Air India and Indian Airlines showed signs of financial crisis as combined losses were ₹ 7.7 billion (US$91 million). After the merger, it went up to ₹ 72 billion (US$850 million) by March 2009. In July 2009, State Bank of India was appointed to prepare a road map for the recovery of the airline. The carrier sold three Airbus A300 and one Boeing 747-300M in March 2009 for $18.75 million to finance the debt. By March 2011, Air India had accumulated a debt of ₹ 426 billion (US$5.0 billion) and an operating loss of ₹ 220 billion (US$2.6 billion), and was seeking ₹ 429 billion (US$5.1 billion) from the government. A report by the Comptroller and Auditor General blamed the decision to buy 111 new planes and the ill-timed merger with Indian Airlines for the poor financial situation. In August 2011, the invitation to join Star Alliance was suspended as a result of its failure to meet the minimum standards for the membership. The government pumped ₹ 32 billion (US$380 million) into Air India in March 2012.
  
  On 1 March 2009, Air India made Frankfurt Airport its international hub for onward connections to the United States from India. However, the airline shut down the Frankfurt hub on 30 October 2010 because of high operating costs. In 2010, financially less lucrative routes were terminated and the airline planned to open a new hub for its international flights at Dubai. In 2012, a study commissioned by the Corporate Affairs Ministry recommended that Air India should be partly privatised. In May 2012, the carrier invited offers from banks to raise $800 million via external commercial borrowing and bridge financing. In May 2012, the airline was fined $80,000 by the US Transportation Department for failing to post customer service and tarmac delay contingency plans on its website and adequately inform passengers about its optional fees.
  
  In 2013, the then-Civil Aviation Minister Ajit Singh stated privatisation was the key to the airline's survival. However, the opposition led by the BJP and the CPI(M) slammed the government. In 2013, the Indian government planned to delay equity infusion of ₹ 300 billion (US$3.5 billion) that was slated to be infused into the airline slowly over eight years. In January 2013, Air India cleared a part of its pending dues through funds raised by selling and leasing back the newly acquired Boeing 787 Dreamliners. In March 2013, the airline posted its first positive EBITDA after almost six years and 20% growth in its operating revenue since the previous financial year. Air India Limited split its engineering and cargo businesses into two separate subsidiaries, Air India Engineering Services Limited (AIESL) and Air India Transport Services Limited (AITSL) in 2013. In December 2013, the airline appointed veteran pilot SPS Puri as its head of operations. The appointment was criticised by the Air India pilots union as Puri allegedly has multiple violations to his name.
  
  Air India became the 27th member of Star Alliance on 11 July 2014. In August 2015, it signed an agreement with Citibank and State Bank of India to raise $300 million in external commercial borrowing to meet working capital requirements. For FY 2014–15, its revenue, operating loss and net loss were ₹ 198 billion (US$2.3 billion), ₹ 2.171 billion (US$26 million) and ₹ 5.41 billion (US$64 million) compared FY 2011–12, which were ₹ 147 billion (US$1.7 billion), ₹ 5.138 billion (US$61 million) and ₹ 7.55 billion (US$89 million). As of February 2016, Air India was the third largest carrier in India, after IndiGo and Jet Airways with a market share of 15.4%.
  
  On 21 May 2021, it was reported that Air India was subjected to a cyberattack whereas the personal details of about 4.5 million customers around the world were compromised including passport, credit card details, birthdates, name and ticket information. Air India's data processor, SITA, reported the data breach to Air India in around February 2021. The data breach involved all information which was registered in the SITA data processor between 26 August 2011 and 20 February 2021, and the cyberattackers gained access to the systems for a period of 22 days. Air India told passengers that there was no conclusive evidence on whether any misuse of the personal data has been reported and urged passengers to immediately change their passwords.