Monday, October 17, 2016

Air India's maiden operational profit: Why PM Modi shouldn't pat himself on the back yet

Air India has reported a modest operating profit of Rs 105 crore during the previous financial year ending 2015-16. This is the first time in a decade that the airline has used the word “profit” while reporting annual results and also the first time since the two erstwhile airlines were merged to form the present entity. The operational profit also comes two years ahead of the target as per Air India’s turnaround plan under which it will receive about Rs 30,000 crore in dole from the government.
For all the firsts associated with this operational profit, it is a significant milestone for the ailing national carrier. In fact, Air India's feat found a mention in Prime Minister Modi's Independence Day speech this year. But the PM must not be in a hurry to pat himself on the back just yet.
17/10/16 Sindhu Bhattacharya/F.Business