Indian may post Rs 250-crore loss

Mumbai: After an accounting volte face, national carrier, Indian, the country’s second largest airline by marketshare, is expected to post a net loss of about Rs 250 crore for the financial year 2005-6, instead of a profit of Rs 48 crore.
The change is after the audit committee of the National Aviation Company (NACL) board asked the Indian management to provide for losses of Alliance Air worth about Rs 300 crore. The losses were not provided for earlier. Indian’s accounts for the last fiscal have hence not been finalised yet. Air India’s accounts on the other hand, were approved by the board and amount to a net loss of Rs 447.93 crore for the full year 2005-6.
Alliance Air, is the low cost subsidiary of Indian. The books of the two carriers will be merged from this fiscal as the merger comes into effect. The board meeting of NACL, the holding company, that began on Friday spilled over to Saturday on the issue of the finalisation of accounts.
25/11/07 Economic Times

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Categories: Air India Domestic Nov 2007, Air India Regional Nov 2007, NACIL Nov 2007