Thursday, September 09, 2010 |
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Air India to post Rs 5,400-cr loss for 2009-10 | | Andhra Business Bureau | | Mar 09, 2010 | |
HYDERABAD: Air India, which has been allocated Rs 1,200 crore in this year's Union budget, is likely to post a loss of Rs 5,400 crore for the year 2009-10.
National Aviation Company of India Limited (NACIL), which operates carriers like Air India, Air India Express, Indian Airlines and Air India Regional, is expected to incur a loss of Rs 5400 crore during the year 2009-10, said Minister of Civil Aviation Praful Patel in the Rajya Sabha on Tuesday.
The losses expected for this year were a shade lower compared to losses of Rs 5,548 crore posted in 2008-09. In 2007-08 the carrier posted losses of Rs 2,226 crore.
The trend of losses was likely to continue for a few more years, Mr Patel added.
NACIL has initiated a process of financial restructuring, including cost reduction, fleet rationalisation, route profitability, manpower rationalisation and structural changes.
The turnaround plan was originally expected to result in savings of Rs 1,911 crores for the year 2009-10. However, NACIL has taken certain initiatives resulting in savings of Rs 753 crores for the year 2009-10.
NACIL had a huge outstanding fuel due of Rs 1,741 crore till the end of January, 2010.
The carrier would undertake additional measures for enhanced yields, improved load factors, and wage rationalisation.
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Keywords:
Air India, National Aviation Company of India Limited, Minister of Civil Aviation Praful Patel, Air India, Air India Express, Indian Airlines, Air India Regional, |
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