Air India to lose around Rs.5,400 crore in 2009-10: Patel
March 9th, 2010 - 7:53 pm ICT by IANSNew Delhi, March 9 (IANS) National carrier Air India is expected to incur losses of around $1.8 billion (Rs.5,400 crore) this fiscal and the trend is likely to continue for a few more years, Civil Aviation Minister Praful Patel said Tuesday.
“The trend of losses is likely to continue for a few more years,” the minister told the Rajya Sabha. He did not say when the airline would start making profits. The state-owned carrier is run by the National Aviation Co. of India Ltd (NACIL).
With the expected losses of $1.8 billion (Rs.5,400 crore) in 2009-10, the carrier’s losses will mount to over $2.64 billion (Rs.13,174 crore) in three straight fiscals. The carrier had incurred a loss of $445.2 million (Rs.2,226.16 crore) in 2007-08 and $1.11 billion (Rs.5,548 crore) in 2008-09.
“The airline has initiated action as part of the turnaround plan and is focusing on fleet and manpower rationalisation, route profitability, and structural changes. These plan envisages benefits of $382.2 million (Rs.1911 crore) for the current financial year,” Patel said.
These initiatives taken by the airline will only result in savings of $150.6 million (Rs.753 crore) in fiscal 2010-11, he said.
The minister also said the airline’s outstanding fuel dues till January end stood at $348.2 million (Rs.1741 crore). “We have asked the airlines to clear the dues expeditiously.”
The airline is waiting for a cabinet nod to raise its working capital by $200 million (Rs.1,000 crore). Currently the airline’s working capital is $3.4 billion (Rs.17,000 crore).
The government last month approved equity infusion of $160 million (Rs.800 crore) for the ailing carrier in two instalments to tide over the cash flow problem and finance fleet acquisition plans.
-
san/srj/vt
- Worst is over for Air India: Patel - Apr 13, 2010
- Gustav Baldauf appointed Air India chief operating officer - Apr 06, 2010
- Worst over, Air India on the path of recovery: Praful Patel - Apr 13, 2010
- Kingfisher urgently needs $400 million to survive: Expert - Nov 11, 2011
- Six out of eight Indian carriers post losses: Patel - Nov 19, 2009
- Rationalise tax structure for aviation sector: Assocham - Nov 12, 2011
- Ailing Air India to get $250 mn equity from government (Lead) - Dec 30, 2010
- Cash-strapped Air India to get Rs.1,200 crore - Dec 30, 2010
- Air India losses double to Rs.5,000 cr - Dec 01, 2009
- Budget: Air India to get Rs.1,200 crore fresh equity - Feb 28, 2011
- Air India to get Rs.1200 crore more during 2010-11 - Mar 03, 2010
- Year of turbulence for Indian carriers (Flashback 2009) - Dec 24, 2009
- Mallya gloats over Kingfisher getting best airline award - Sep 28, 2011
- Air India awaits cabinet clearance for raising capital - Feb 22, 2010
- Go Air in talks with European carriers for maintenance work - Apr 19, 2012
Tags: air india, cabinet nod, carrier air, cash flow problem, civil aviation, crore, equity infusion, few more years, india ltd, instalments, national aviation, national carrier, praful patel, rajya sabha, rs 1, rs 2, rs 800, srj, turnaround plan, working capital