Maharaja's new flight hits wage pocket

Manpower issues may continue to dog the beleagured merger of Air India and Indian Airlines. The two entities merged a few months back to form Nacil (National Aviation Company Ltd) but as per annual results of individual entities for 2006-07, the combined wage arrear payout of the two airlines was over Rs 1,000 crore during last fiscal. While Air India has reported wage arrear payout of Rs 425 crore in 2006-07 (partly responsible for dragging the carrier into the red), Indian Airlines is saddled with about Rs 600 crore of similar arrear payouts. For the fiscal under review, Air India posted a net loss of Rs 448 crore against a net profit of Rs 15 crore in 2005-06. Not only wage arrears, rising cost of ATF and incremental interest payout on account of fleet expansion also dragged the Maharaja down.
27/11/07 Sindhu Bhattacharya/DNA Money/Sify

To Read the News in full at Source, Click the Headline

Categories: Air India - International Nov 2007, Air india Budget Nov 2007, Air India Domestic Nov 2007, Air India Regional Nov 2007, NACIL Nov 2007